BlackRock TCP Capital (TCPC) 2 Aug 212021 Q2 Earnings call transcript

Ladies and gentlemen, good afternoon. Welcome everyone to the BlackRock TCP Capital Corp's Second Quarter 2021 Earnings Conference Call. Today's conference call is being recorded for replay purposes.

During the presentation, all participants will be in a listen-only mode. A question-and-answer session will follow the Company's formal remarks. I McGlynn, to TCP Director Global Relations now, over the Capital And Investor Katie to of team. instructions] would turn like call Corp, [Operator the BlackRock proceed. please Katie,

Matt. you Thank

conference we future call on Before performance. estimates of such time assumptions at and note not statements I'll that and the may forward-looking are statements begin, contain based the of management this guarantees of

this risks differ forward-looking notice. may our involve to and are on materially statements XXXX. Second the those statements actual subject could release ended uncertainties earnings of Forward-looking results Earlier as June Any from projected. made are issued today, XX, call made and for Quarter today, and we without change

To on conjunction slide was today. Company's refer now Chairman presentations. reviewed select see we the will We over link call Investor today's to Howard which Form the These to posted also and earlier supplemental tcpcapital.com. SEC earnings with presentation, to the a click and and our presentation CEO, which in Relations Levkowitz. on please XX-Q I the events with call the at our be should turn documents will website filed

activity. Financial Officer, provide from portfolio I President our with And investment interest Cuellar. today, are There today. the joining Raj then all you appreciate your us members Raj and Vig of including Erik hope quarter. on We several are on continued Katie. an for will Chief Chief call Operating start our safe our few team second you, in Thank the we thank and with and well. TCPC, us you on and will TCPC update a highlights Officer, the

value credit call our capital meaningful quarter, positioning. increased and of your financial questions. are value results-driven deployment. a with will a the and increase as from another on which by the year-over-year, well that, will and highlights fifth asset our value outstanding XXXX, as This Beginning quarter, asset opening strong TCPC drove net portfolio quality significant comments the robust net review of asset value the value I investments, as Erik as of XX.X%. up increases, results, some quarter closing asset second provide in delivered we our In our net quarter Next, to second builds liquidity before value growth, After is our is accretion well consecutive had we X.X%, result proud. positive and asset of which net the extremely net during our

in by Asset discuss was increase per Together $X.XX Value million in modest primarily of again Net more Edmentum. investment the on dividend unrealized or our was QX $X.XX per in income more the $XX.X Net As detail, million in value quarter across investment which Eric exceeded the with portfolio. in in our driven will share, a increases $XX gain share.

remains XX to at loans fair quality nonaccrual portfolio with to and points just two credit solid Our cost. at portfolio Basis on points value basis the XX companies totaling

we And detail, in in Quarter. investments XX% XXX. As of by we Raj to deployment had gross the the increased discuss activity more significant Second number will our

market extensive lending environment as team of the to decades middle-market our relationships attractive as While provide than more benefit platform from opportunities. two continue well we've developed BlackRock we that with the the of over remains companies, competitive, the to resources investment

to position U.S. over of platform. COO. of year-end. Phil talent deep CEO over year, the Tseng strong in in announced for sheet XX/XX. and done XXXX, team. we more TCP TCPC May the results this which positioning. I'm Despite BlackRock BDC years, Index. as Officer generated amendment, stated industry-leading for June, that BlackRock as have we shareholders been the effective part smooth capital of Throughout XXXX of performance as past Raj co-heads to of months the throughout the the Wells our we TCPC, lowered are TCPC will to to cash Fargo a strong balance to XX/XX, at ago, Phil In amended to invested developed President to are BlackRock BlackRock integration record. our me the as build a the rate together continue upon from and team seek years. the build successful worked volatility LIBOR will +X.XX%. the Chairman than while well and return Chief together and by +X% I 's succeed LIBOR through of will we X.X%, platform delivered nearly extremely on X for I occurred instrumental facility be our liquidity have Phil at XX.X% extended to of return TCPC, continue outperforming we've these maturity credit growth proud and the built the effective have upon my we retire plans period, strength of an record. XX -- years SVCP unparalleled TCPC assets that total BlackRock appointed have credit and also Raj, equipped my also and a and as private Company. and X years ways and also the We public view And They private Vig at I and from decades track XX track into transition. Chairman Executive a we BlackRock, to bench X accomplishments, In leveraging acquisition TCPC's and are two of allows scale of and fully as enhance now Raj remain

would since is like CFO, this which as extremely as position Cuellar to prepared seamlessly. Eric TCPC's his appointment a I for congratulate position serving he XXXX. addition, assumed on has In after well Eric Controller

on her of from Additionally, Kathleen Board invaluable her the behalf service board, retirement 's thank Kathleen today. been tireless an the shareholders. Corbet member effective TCPC we has announced her TCPC of and for

positioning. over our it to turn will I Now, to portfolio discuss Raj

Howard. Thanks,

recognize and professionals a building and capital appointing talented in and a our chairman of well-recognized as team rest Let TCP's Phil partnership we significant what to team I have long-standing business a track is me we Howard's at extremely moment now greatly TCPC. of success. the me in architect to leadership our to our our are continuing Also, first CEO investment with to Phil the U.S. BlackRock. along attracted of Howard, look confidence record has with team proud I the private key Howard contributions appreciate forward industry and greatly been developed. and the of appreciate board's in leader take I and and

the from of our portfolio portfolio, our across providing a At investments and value portfolio our $X.X Quarter-end, prior a wide XX% of in of industries, fair-market risk. concentration diversity and secured an spread and activity of minimizing during Second Now, and Quarter. nearly investment are positioning senior quarter. million the billion to $XXX range are increase had turning excess debt,

Our portfolio cyclical towards business up remains less industries. was of weighted portfolio at also is and investments companies quarter-end made models in The with diverse established companies. in XXX

slide is on chart our and As across the of income the our not on recurring X of one from income the reliant shows broadly Company. portfolio spread any is presentation, left side

positioning of our recurring floating rise. when are XX% X% of significant half us debt to companies debt rate, well investments our eventually income. interest less of our and portfolio our providing investments over downside rates fact, each a first-lane, for XX% In contribute than protection,

Moving onto have existed activity. market of prior In investment many dynamics to our pandemic competitive our the view, the that resurfaced.

options, However, continue financing more to leading number to solutions tailored their opportunity. and due flexible an of to middle-market increasing companies credit seek private investment

developed continue platform. BlackRock's X of over industry to a credit we've breadth expertise, decades, resources and investment across us to range relationships depth available deep our We source leveraging the and of the global the wide opportunities,

continue our these investing deploying last companies. $XXX perspective, approach source have be and end know always to was substantial in primarily invested opportunities, end in market, We this maintain them. XX And and investments, we in to of Investment months. investments capital to at of percentage are more including the been management From new we investing. existing than of we total of disciplined important a actively for regularly in only we an number XX small companies review exit of opportunity XX million understand we us. loans a second companies to the robust. quarter While while up a third X already investments existing portfolio well. Accounting Follow-on risk holdings over a loans for a

co-lead. continue and as As portfolio emphasize we opportunities, seniority lead we investment act to in analyze new structure, we or transactions capital the where diversity,

a investment Our and designed Quarter Technology developers. Second Pluralsite software Enterprise for and provides an during training was first-lien loan software, services learning largest that platform the to

growing and a presented existing that sponsor. from was of well-established a business. investment, opportunity a investment recurring total has cash invest to typical Company part and visible side flows a our our customer loan revenue in support strong strong While than a compelling and The base provides equity solid floral larger

Our second KeepTruckin team the solutions and compliance, transportation and for largest venture in quarter, video in KeepTruckin, leveraged companies. fleet XXXX, logistics investment lending provides and to management Founded relationships. capabilities safety, our

Our entire to team worked directly first-lien financing. the management with refine

offset yield as of points repayment companies Dodge during a in Overall loan Since XXX investments X.X%, were had effective $XXX LIBOR to to yield Greystone, XX%, our below partially Weighted the the declined X.X% our AutoTrak. maturity investments New effective has of Quarter effective portfolio And our million. average the on dispositions, our Second pressure by yield. XXth. XX/XX/XXXX, included Data portfolio modestly June during on loans well has or overall new by to and as on was the which average Quarter put portfolio debt yield Weighted AeroTek, These payoffs in as totaling and to of the Quarter. dispositions X.X% Basis

floors. to are rise. floating XX% of are rate, when that with we loans currently benefit are rate And operating floating XX% our well-positioned LIBOR However, given of rates our loans eventually

current to environment. business and maintaining on are continue in focusing with companies selectively, that well-positioned discipline, the models our We economic invest established

yield million and current yield activity are investments date, had portfolio we quarter loans to pipeline effective $XX date, X.X%. third X with the secured approximately have with third totals approximately in into a combined The quarter. primarily line to in Our prepayment our limited in in on generally income of senior our

promotion significant over the call instrumental an over Erik to with look his turning role. Erik of his Erik? like new finance years. his contributions forward I a Before well-deserved would in and XX team recognition on TCPC's promotion I of been his the to much CFO. to has congratulate very Controller part as past to our is working Erik, him

that. appreciate Raj, you, Thank

exceeded Turning is income Second fully as to dividend of our covered IPO Today, we $X.XX paying to which of financial at the fee of income $X.XX. sustainable we that $X.XX Second included amortization Notably, a share. committed Investment Quarter, share. for our per recurring dividend have dividend Quarter share, income PIK of investment and This is per We're X and discount in income since Quarter XXXX. our $X.XX, years. a PIK done per net investment share. $X.XX we income results interest the by generated net Third $X.XX declared of per a level cash more $X.XX, in than lowest Quarter of was for recurring every

share Risks made. and included Dividend reminder, of the $X.XX investment dividend in for it at our of included OID recurring of $X.XX of included million Second fees other fees. Investment Income Operating of share expenses total $X.X amortizing and income on the accelerated of our Incentive deferred per other $X.XX income share previously of included economics policy Quarter, a for penny $X.XX life in a interest conservative than Second equity also were income or an million Quarter the follows investment, income. the the which time income generally $X.X debt per our share. per is and income all As and Edmentum. in million or $X.XX $X.XX Net over dividend share. per $X.X Quarter investment and $X.XX rather exit expenses recognition totaled upfront of recognizing of the per fees from

of we the this noted, with be over period above the amount the hurdle. previously our to in quarters, a deferred to incentive from income year, have final performance remaining third subject we voluntarily cumulative X to our recognized XXXX of As quarter fees related

$X.XX net the than penny in increase Edmentum, online and net or the primarily in reflected share. million of million million million $XX share of to on Edmentum or quarter unrealized as losses per per additional continues a committed of the gains share, increase in for Unrealized from benefit result an which $X.X investment Company Our less included dramatic investment realized or a per education. $XX.X equity assets our quarter. for was a gain in the second demand net net $X.XX gains $XX to

in the second as overall dislocation Company last reversal and in year, as recovery, of market quarter losses resulted also following in on the gains continued Amtech, Unrealized also improved investment and tightening Unrealized spread first these as of the sale from end. the the were investment in equity of sentiment partially Additional our of million and reflected million of of the market approximately gains offset one-third Fishbowl $X.X services investor result by post-quarter half significant restaurant $X.X are software exposure Fishbowl. pandemic. a to restaurants, provides the marketing unrealized direct in to gains industry. unrealized only and the well

back is quotation also the Company recover. of by valuations. every rigorous been our independent Substantially, using prices our and has testing Given against and These quarter to third-party to Fishbowl's including exposure investments provided services all this are disposition services, oversight, slower to subject industry, valuation sources. process independent include every of our valued

quality to just and portfolio loans at June with portfolio cost that X.X% overall of strong, at just Howard Our as companies X.X% limited credit nonaccrual fair at two represent remains noted, the value XX.

equaled million Turning of $XXX included million, of our and total million. companies were settlements loan $XXX Unfunded $XX to pending $XX million. we This commitments. quarter at of $XX million, or with of which revolver quarter-end liquidity leverage $XXX commitments million, ended available of investments cash to of portfolio total liquidity, approximately net the X.X%

we note from facilities, an and an in note Our capacity SBA. to program diverse unsecured the million X leverage X a flexible XX program. additional and low-cost straight In includes subsequent credit quarter-end, convertible SBA issuances, issuance, received

debt unsecured be and investment-grade to rated both by Fitch. Moody's continues Our

our Additionally, given of any each on we laddered. the size financing overly reliant source of modest issuances, are our and debt of are not single maturities well

XXXX beginning of And of bond interest Combined, given back that, of liabilities I'll March average is are decreased notes. to those from or turn outstanding X.XX% earlier redeem X.XX% well-positioned this our year, the Howard. our and latest success weighted year. maturity rate the nearest very it the the Our to to on refinance we issuance at over with

our for their team closing, In over Company I to thank Erik. we hard trust entire I'm Thanks, team over the proud like of support would I years. to incredibly the the dedication and also built. like thank years. investors would their work the and for and our

me the the for than in professionals with every this forward I a with questions. and Phil we in have our years come investors and please are As open decade. have TCPC ability our investment predecessor and a well many you years a team TCPC us I'm And know, their appreciative results of to for that continue confidence have And over The to that both effort. going XX of ago. 's alongside worked number delivered today. more vehicle back fund worked dates the those shareholders for grateful expect. the XX Raj deliver results of years invested been have call XXXX, and senior to still for over have Shareholder truly most to operator, that, have team

will this assemble pause [Operator we momentarily roster. to time, our Instructions] At

first question Raymond Robert with James. come go ahead. will Dodd Our Please from

that active activity, shifting more the come Quarter, decade Howard competition probably spreading Hi, consequence to with question. or would I the which obviously, year, on we've the gotten in Quarter competitively, obviously, a for extremely your Is good guys. assistance for results opportunities And years that a theme terms to or [indiscernible] both have [indiscernible] the help whatever very Second And Quarter say we're of you first I active general to of like future then Fourth this on the or space for endeavors that? active of that, [indiscernible] pre-COVID, thanks materially else on a amount last the the origination all Thanks any and the [indiscernible] dynamics, -- [indiscernible]? but to mean, back are. capital of seeing. can Second understanding than is luck us just there's of over Howard. Is in given anything a give

for Robert, you Sure. thank comments. your

well. I've truly enjoyed all, relationship of First the as

Raj Let further. it things brief respond then me and to say a over to turn I'll few

has somewhat Our activity been origination always lumpy.

opportunities some important a to being environments; have wide if -- all diverse, distinguished Clearly this I of helpful at our diversity that we've things the streams deal add that's think about platform that origination to of do Raj bad all in that's it it's we of industry-focused, markets, benefit probably for But We think has creates in of competitive think kinds specifically large little good bit and part of the the distinct we a you have the one also business. variety a markets, the things of But remember that that's seeing here origination platform able from flow been BlackRock. should in business. environments. I environment be today. that many we're are I would others generate

your thanks on competitive echo your say, I'd I it's Howard would And a more the Robert, the bit environment. is and Yeah. fact again comments. competitive let me touch to little just new. But appreciate not that

color. been, as up transactions to of Part been as our seems approach, I and level. compete to Part or the means more we've takes it for though opportunity to we're And your necessarily industry the different, move right to but from attracted platform fulsome a everyone important always provide for to provide point needs. at and isn't that And do that But -- important. Hopefully their more is a of broader though even been as The case given that to own, maybe it at all a the of need do what think can we really maintaining this taken be have that. the on small -- solution, about. and of a lender the that need returns you some not or as means the there it that club Quarter evidence in particularly ability you activity. can set. it's that ability to base. as or provider think do just people able given level a interest part for lead to I position that I up, that to doing to opportunity that an approach that velocity being laid do to I competition from a ongoing the the excited picked as capital if being an that is investment think set -- have it where people think be an of characteristic you well that's provides I Even quickly. to perhaps there's And being go overall good the ever of able this context solutions more view, the coming the well-positioned does that does important. having don't maybe able I -- good maybe fulsome have think out. was of And were, a sole positioned and result is solution end to deals more be improving

a follow -- lot if And than a to But can had typically maybe Howard's point. in others. up wider of I you've Understood. that funnel to

element vanilla you the to of all channel you Would a the to -- caveats just competition stay stays plain expect a it do of expect of add, you a more beyond lot from better flow term to just expect level your element with your portfolio utilize Raj, of if that to lending a expect deal? -- greater same? doing of etc. the Would differentiated things channels, vanilla you the flow cash rather lending, the come enhanced, those club You or than asset-backed, maybe Would do you differentiated cash lack

hard I to think say. it's

we I really -- think focus channel-agnostic. has our always know are been on we

because So the if that happens, we about industries believe cover I positioned we're themselves. do

the were business. repeat work early not pockets in the folks hard that of of work we at good ARR we when It's everyone do but with, we private we or The ones appropriate. have open those find of becomes We a that lot the that. value coverage arrive, ABL deals, We're to were And space. asset-backed mainstay. predict to equity, with. like that We then structures

want and smart of comes than on wider occurs advantage an and it rather wherever trying cognizant approaching think think, we risk lens we helpfully And I wherever basis. from. what take of industry what positioned very to concentration or a predict us the to predict to reward with should being take us to flow work let of go-forward enough -- for things advantage being funnel those be that, deal

I'm just you. appreciate good, Thank I that.

you. Thank

next will Fargo. Wells Our come question ahead. O'Shea from go Finian with Please

one your Robert's there. Good BDC afternoon. on echo And on for comments on or the Hey, I'll congratulatory [Indiscernible], everyone. appreciate we'll first powered leadership the add

You in your we questions, really pioneering well lot first in so I'll of game channels look a driving parts alternative of managers, adapt. that's -- of And ask that. alternative race credit of think appreciate retail discussion the is be the or your of time? fundraising a will some move entering a now one to I into a couple believe really We and [Indiscernible] be couple origination, of growth BlackRock's were the at as that this of manager forth. couple back, up the into must and very competition. you Do peers that but view a also BlackRock your stepping stepping up wanted in the large this group really trying the should the on see fundraising are of in much fundraising sense, and I on the side large to to

vehicles. competition place public coming with business. to very new and and we're took are TCPC look who institutionally in was vehicles, they're an respect left for think it's vehicles, importantly us, private Fin, people vehicle it sources unregistered this institutional structure you in investment what to of back into those we've and respect institutional, of public, constantly private the thanks back we in. of to newer vehicles, The for more comments, with both of joining respect the proud a registered personally domestic, I With for we much done it's industry, something foreign, Different retail. investors, look the sources believe to when

your other BlackRock's the Obviously, as high by and push - channel questions -worth retail Asset people we Global comments think around of had size, or touch investors we're we always aspect and make TCPC, across over our provides respect think sure every for the time. different to looking we're try Manager it interesting. I right thing into net the doing and are With to investors a we'll investors, great for on X institutional, TCPC. those investors different individuals. And focused as sure in probably liquidity well we're things can have we opportunity right do with and to all as who product. for need channels, but for decades people our offering the different been that that daily now really get continue things in those who making And see us to

I'll That's follow-up. do helpful and just a small

to if us gives on color exit able is both? post-quarter. I you related to equity or tell Are think Edmentum your Erik debt some or

little faded You Sorry. Can that? you repeat a bit.

you asked the Edmentum about think I exit what was comprised exit and and of? the

Yeah. for book? or Did of debt equity get you your out

are -- equity and the It moment in at all at Quarter. was this X last equity point have the We since only invested

sells down was have be that equity we we -- equity, sponsors original -- the did of post point the that that in, refinanced. been to when Erik's we the time sheet was had to position. Yeah, in when balance we clear, just the transaction, only And came

so all That's for Thanks Okay. much. me.

go with ahead. Please from will question next Ryan Lynch Our KBW. come

years Howard, there, working enjoyed you best wishes. to or Good you, congratulations really Raj, the and I morning, just want congratulate and over give with promotion. you on I -- to

of believe income in Fin's investment. $X.X -- -- recurring income you regarding said And position, Should had non-recurring repeat Why that second did down amount to hold well the a sold a was a off from not you you item? or on it look up Why can did how expect you of about? of portion you was X/X full a guys your I of that size it how Edmentum? that, there? does [Indiscernible] comments to talk your on your from Edmentum, guys right that position, question down regarding then that future all? you we as exit did post-sale selling of in a just Following million you why choose quarter-over-quarter about Can not when X/X? just top come as

address It is I'll we're a question preferred This Sure, equity and the is first. invested Erik, actually dividend a We equity as portion income. as -- recall, both address. a I'll recurring dividend that somewhat well. sell the recurring. in we elevated tranche then as Quarter was common down we last mentioned, But this but you dividend position. did And of income, you normalized more had level of equity a

me let And pick Yeah. up on that.

is business an at result investment obviously is in and position redeploy of mentioned, The the effort as obviously, work and Doing same -- not fully a to benefits normative believe, interest a nice as the a so work But so well-positioned. There's the sales, do speak, of business. a ongoing way It's positive time, a the to is work strategy. excited where to realize are wins business. philosophy. that the important take equity proceeds getting it at part do was more manage I sell-down, income. we profile to our those that this today. get into it a and it for are the here So of the really -- there Erik about we We and was think elevated of part valuations. into Being as owner normative sell-down been comes we for is as size. part nice benefit of those the of that can thing it run-up the valuation, I the position realized the lot still also to

institutional come have new who this part transaction. of well have investors as as in, You

a want be it growth to part want book but a take part partially of of to a success led chips as things of we balance us with is, off combination strategy success business. the some that core to an And the of also of with well-diversified the the is that as we position. be well ongoing So exit, what table, part a net that future and on managing basis, the the but diverse

as Okay. of believe out correct, and quarter, more over find Understood. new deployment. that origination And you past new existing portfolio the came additional a year been have XX companies from into lot portfolio capital it then of like lenders I this is feels meaning your mentioned companies from came existing. direct If X they

and and but on versus draw know lot there of on portfolio this too want focusing commentary fluctuate I for I a was such many companies a on really you conclusions all because single-core again, love number your -- can You I'd portfolio deployment. why don't this new flipped hear things ones. companies to large Quarter trend to existing Quarter one new that

and don't give the for working for thanks you granularity well. going Quarter. enjoyed with to too also emphasize thanks initial which to have but would pay attention as more let I'm like Truly little you Raj your Ryan, a comments. is, follow-up, single your statement a bit much to

very datasets. in indicative companies, industries, fact a a simply of we've set relationship a robust is important it's well doing of part new that existing lots deal it's part been of for our lot the benefit the that of relationships number long-term with a and from Quarter, relationships of a we running benefit half. across over with of have continue a years of small these The a we our borrower our and now particular slightly existing trend, talked has view, different Quarter not there's flow. about significant of For fact to a business that This having

that or typify to usual quarter. but business. mean, consistency and would no mean that -- a We're [Indiscernible] period the trend. quarter-to-date quarter come the true. think we even And there reiterate has the our versus – single where over trend. I general existing the so, continue and And our the existing data year, commentary the a Howard's I third from highlight is in is that Forex, keep level that quarter of that the portfolio I going how of investment just is a you maturity model, or no have given I the in last a leads. activity and from that And year notes, portfolio would relationships to the seen portfolio. about think performance single to the point view itself as it's I with I a new indicative or just level really think the the Yeah. we self-generate expect past there reiterate that about just is at of I this of business existing have benefit mature more pipeline, message over

end, post-quarter of of to I'll And we've X add we done $XX just the activity and X little in Ryan, X of existing million on mentioned a deals those companies. bit excess color portfolio were

make trend appreciate And the Okay. doesn't things probably but are it going but totally today. bit was Those reverted time that back Understood, like sounds questions. it one unusual, to I quarter forward. yes. a a the I all understand just little my normal

Thank you.

next Our question come JMP go ahead. Please from Securities. will with Ryan Devin

Hello?

off. dropped Kevin has

Ladenburg Thalmann. with come will Christopher from question Please next ahead. Nolan go Our

other I you your you act on And and Howard, say to going Phil, congratulate Raj, the congratulations will missed. Erik, to definitely is to of class are promotions. a world want move. to of there on shifting sort you we've and Raj, terms I be new before? in And be BDC groups than industry want seen what strategy in any types the of to

level. say high I not really. No, at a would

asset XXXX great we're like times collateral not for on question dynamic. your focusing to anticipate very business invest little more the strategy, there Certainly, answer opportunities that We I very are open that in are was believe come often we we defensive. a open typically think timeframe in and base where but in where a But they business I and what to in about that it. what -- perhaps is always succinct see than what change don't to opportunities businesses mitigating big more experience we cyclical to would being see a we're a to way, we've alhough had Occasionally, good we from. good works. I more be we validating the do date focus

you that more price make down a given but you're that race. able is and guess Are compete on bond terms it especially I attractively cost And up to as on latest follow-up, to finding conditions? your better with that capital going

decisions. honest, investment outcome good may financing from that's cost underwriting a We an our it look a we to work capacity where the but unlevered risk. the is at may are an creating really be perceived want that think activity our work decisions, And versus the financing -- side when the more bifurcating portfolio We on of to to not financing I of or otherwise. lower on the investment or investing basis capital for management level make we then the

we it's investment something from it's but about, would that viewpoint be opportunistic that I decision. keep think I will separate the

you, All all right. congratulations Thank of and to guys. you

your thank Chris, appreciate really comments. and you,

of Derek next Bank America. Our go Hewett with ahead. Please from come question will

I your to Raj, retirement morning, your new Good on also roles. congratulate pending [Indiscernible], Erik then everyone. on Howard want also and and

been platform. X now So on BlackRock about it's years the

And we current percentage ago? what with maybe X kind opportunities the So is co-investment at point? could maybe, portfolio of it BKCC to this compare of year

mind was, but our say order. that be BKCC sorry, the We in -- we function of -- the will order. logically, that? of so it percentage. would today, is that definition, from to your has don't started percentage I'm requirements of But disclose second a keep I the higher of activity under you By overlap, part a day just the question been can repeat obviously the co-investment

answered. year ago, already you Just think comparing I it but one from

disclosures, year want by to our make the going going I wouldn't think being that ago, higher, clearly of a back don't back I again, comment. transaction, beginning constrained to

years. is we had over Raj XX Derek, have and which is thing relief add exemptive saying, onto for let me what one just

there entities. certainly a were being way various we So that to had of benefit across a long long we clearly and of vehicles before were But our in we very able that. functioned propper do being the lot a have and public, in investing and before became time of BlackRock part long of was BlackRock opportunities for TCPC part since

different. but it's or is expanded, nothing not new, this new So

Okay. Great. Thank you.

Thank you. And thank you for your comments at the beginning as well.

question [Operator Please JMP Instruction] Ryan will with go Devin come next ahead. Our Securities. from

so afternoon, more wishes working strategy, the everyone, Good again, looking Great. And forward best of future continuity congratulations. to to Great you. yet with Raj, the endeavors. on Howard, see and

given a of the the the you different and that first elevated like of stress bit and just pandemic, equilibrium level capital in actually capital follow-up you're it the feel at But dislocation pendulum as into ease, with and stepping swung compression question competitive that has the of Clearly, competition the back middle during providers the a do the that little on that coming point seeing of see the dynamics to in pendulum opportunities market? hitting terms seeing. macro the outsized more kind given been moment. the markets at or guys of some think just could we're you out does the market, as In are created we maybe just

we -- deals that just since of level, and our not be we mean, phrase just what our I to want it over know take we terms I where clearly broader I'll avoid question -- and equilibrium, really since sourcing just of to comments think It It's a and like. in searching any feels decade not But activity. level things careful defined we're it's dynamic I also reflective. -- for and deals, Yeah. ask like very XXXX consistent inactivity. our the look activity the be if ago. deals is like take and market so pipeline making it a are because to try position, may market where and I where by feels [Indiscernible] don't half there's of a looks it's any feels recovered tend from be our the as activity broader which and comments. add I whether that a joined or

the for tasks, if pre-pandemic our the and to our to no that time, retraced the character their levels deals you ones at at has work people terms script are saying portfolio we're also earnings and will.But what and in on As business. of for lots mentioned you looking same focusing

in just additional disciplined can more can what that's on us where to the we it's the broader less, good something for going stay whether we very seen an of may LIBOR mean that things market, the where terms So really work. equilibrium going get or do works focus may think we the has But to for. will is with or different and but compression, portfolio. And feel and our been do that got And a may pricing, may what right in do it's the activity, not to account it stabilization and our we we're we that market right can coincide sort we've deal I a dynamic that we've pipeline control. mean but have

you. Okay, terrific. then thank a follow-up. And Great color,

where portfolio. it the that [Indiscernible] event great forward. of should overall asset back was strong the expect overall you've equities portfolio, the level moves the color mix makes a of the the mix to see that mid-single-digit you around to clearly Maybe if at is after asset assets in the believe little of Do equity benefited now looking more you XX% believe pre side, about, how from get Just thinking Be we was the which moving performance position? the and monetization on think I on of sales. I equity you're could -XXXX,

the we credit against business. Yeah, are

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Terrific. Okay. thanks so much. it I'll leave there,

you and today. joining for Thank thanks us

conference any for closing over question This Levkowitz to remarks. our and turn back concludes to like the I Howard answer session. would

again, of hard continued I'd TCP Shareholders today. team once us our thank professionals confidence Capital like our Thanks your and again work call. for in dedication. support. to thank BlackRock I also our questions talented like s We concludes This your of would dialogue joining for appreciate at your and and experienced your today. our Corp to, all for

concluded. conference presentation. today's Thank is now for you The attending

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