BlackRock TCP Capital (TCPC) 6 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, good afternoon. Welcome, everyone, to BlackRock TCP Capital Corp.'s Third Quarter 2024 Earnings Conference Call. Today's conference call is being recorded for replay purposes. [Operator Instructions] And now I would like to turn the call over to Michaela Murray, a member of the BlackRock TCP Capital Corp. Investor Relations team. proceed. please Michaela,

Thank you.

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

and statements without Forward-looking forward-looking and results could projected. on are of notice. today this call subject and differ statements uncertainties actual changes from materially involve those as to risks made Any are made

and to sources not Additionally, representation our been today, third discussed derived September XXXX. the verified. certain we been we quarter for and have Accordingly, XX, third-party information independently may or presented from warranty such issued has make no ended release with earnings respect information. Earlier

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

key Q&A, our thank and XXXX call. our President, financial for will for answer including Phil played role I COO. Today been that as you all capital decision discuss opening And to am and here some to the BlackRock overview and wrap TCPC, our I then growth and I the joining Chairman you in now, our and TCPC's We'll an almost release many of earnings and Capital of honor excited leave portfolio to as lead at for well results of liquidity CEO leadership as call the the up press will questions. our XXXX, CFO, a comments. By investment third chapter. third TCPC closing to Erik Phil Jason the September announcing Corp. in today and as accompanying review available I results. be TCPC. my since quarter resignation quarter with position. It Erik And BlackRock of and activity. changes company will saw with our up our before development our for Mehring, all an has I'm have Tseng; Cuellar; Michaela, as decades Thanks, X well will next provide expect

are hands Phil of other partnered me CEO having and positioned departure, my and and of Phil team, closely Tseng success. Following Chairman the TCPC will members succeed the is long-term that good Board. in with very believe you well management as I And for

the net historical the at share Now investment income end turning is of of was We and to approximately return the equity levels. per XX%, highlights delivered XXXX. which our adjusted annualized income quarter average for net third on of $X.XX high

Our which dividend fourth Board of of our Directors coverage declared NII. of quarter implies XXX% a dividend $X.XX third per on adjusted quarter share, based

XX, share. XXXX, our XX, dividend, In Board the special a of December payable December is along on addition, dividend per dividend, with fourth to XXXX. the fourth $X.XX of quarter quarter, for special on The shareholders record declared

to investment take net continue income. recurring emphasis We coverage strong dividend with from to on stability approach an and a disciplined our

on value also we have XX-year Board our recurring paid reminder, October public have a As our net million as throughout history authorization a aggregate NII to special repurchase our with XX, several our $XX TCPC's thresholds below the per accordance of company, stock our up and to asset dividends of in consistently prices share. Further, with covered certain Directors dividends. in reapproved at common

maximize shareholder non-accruals quarter. repurchases order a to approach thoughtful decreased since share in maintain As always, we continue Overall, last value. to to

portfolio one from NAV. to and additional and to loan the a removal in non-accrual status. This certain slight reduction resulted of equity Group's X.X% non-accrual Razor non-accrual addition of Pluralsight, preferred one company, reflects status markdowns However, the

X.X% portfolio declined loans As status X.X% to result, of non-accrual fair value. on a from

direction. While moving this level right clearly of non-accruals may be higher it levels, than the in historical is

specifics. its a Turning restructuring status where We non-accrual The took lender by agreed investment control strategic sponsor lender of group Pluralsight to followed sheet business, accelerate $XXX the support change and long-term August. following consensual removed the initiatives recapitalization group as an provided part in of from goals. the to the of control strengthened of capital growth over to and and balance additional that million

of a of the part TCPC the equity well this As portion owns debt. recap, as now as

lender Pluralsight's closely group. the alongside performance remainder continue of We monitor the to

you create This We will efficient third time. performed company to Razor's line chose in chose recall, preferred of We their and company. aggregator in year. has place on March acquired this ultimately believe will of this more challenges consolidation equity via quarter the some which combination not Group, in is As the industry, Amazon strategic with Razor our a may take expectations. the to address as Perch non-accrual in

SellerX, quarter, third which the unique Brothers the InMoment. portfolio companies, company-specific. Amazon marked circumstances each companies of largest in of we in Other these During an Gordon is we past, and and the aggregator, portfolio positions SellerX of which than discussed down the were were Company, Finance several have

loan to position sale of specialized investment Brothers our in BCIC company to non-accrual company of structured, associated with The this that transitioned related in a merger. At of Gordon value the the residual has result unaffiliated the sold time that largely assets first market The it and substantially on middle companies. at to merger, is TCPC the investment originated claims November and a of the third-party its as loans all to XXXX. TCPC maintained is firm's assets. BCIC of since the and in Brothers, Gordon an asset-based originated, The finance classification of commercial was current merger. invested The

and claims. quarter, those in third likely believe the developments providers ultimately realizes the a valuation be our certain would team led During TCPC there to deal third-party from decrease proceeds

decided of non-accrual on the stretched status impact a consumer in combined the balance to sheet following spending, place slowdown a in which SellerX, second is second and The quarter. we online

As lender to to the group the have detail we provide the have address will an additional been the structure when owners you agreement engaged seen company with and capital company's the can. rest we and may of we in news, actively and liquidity, management, effectuate

believe are Regarding space, the at invested the in aggregator this we we leaders Amazon point.

compete While structures, the environment. sector capital has years, a X this we over and evolved investment forward see the the strategies aggregators successful to with for continue new for past those appropriate path to in liquidity, outcomes

longer and the benefit will we businesses improved from consolidation, believe operating costs. medium Over lower structures, to these capital term, continued

performance in an unrealized solutions. softness, experience for resulting provides The has experienced which the third and InMoment, is financial customer analytical quarter. loss management third software InMoment's

and were unrealized Pluralsight losses $XX.X restructuring restructuring quarter were in primarily from to growth. At unrealized portfolio As end non-accrual a investments has and offset service investments the of and debt steps to the were X.X% by our losses XX due third previously quarter, realized representing McAfee. Net taken reversal fair underperformance, our in improve the value. this of result gains on Pluralsight status, the of and the of Securus the of unrealized SellerX, and and gains InMoment. to of $XX.X XXX of companies McAfee unrealized at and million Gordon team X.X% expand product for driven at Brothers, quality by in management in Domo, portfolio losses cost the several the million, Net

actively monitoring their of end are our rates respect and their the capital markets, businesses, structures, on to with We companies and higher inflation impact portfolio performance.

XX, XX, XXXX, was of XXXX. risk X.XX September internal X.X on As average our June weighted rating compared to

our indicate portfolio to Our that risk or with, in line, companies base rating average expectations. continues our internal generally performing are exceeding

to over it activity to turn portfolio. and Phil me investment our let Now discuss

Thanks, Raj.

Before want Chief COO; the in Dan to Board's alongside me Patrick vote to TCPC my years, of confidence of who Officer. I'm going Raj Wolfe, was Mehring, effective been is appointing excited President; lead Worrell, Executive is Jason Chairman November say I forward I who X. appointed Co-CIO many appreciate with long-time colleagues, and who work support begin, it's a and and appointed to I privilege the for appointed

we our thank ahead strength for partnership to contributions talented TCPC collaborating a create and very I wish and have of value continue to him forward We and over his future borrowers. for to BlackRock years the his Raj look leverage in the opportunity the shareholders his to tremendous best with our team platform many I to want our as and endeavors.

the speculation although the relative may and the change now. of arrived. Last accommodative to election longer Fed's the previously who market messaged with higher I'll remain broader with few up. improve. We in important longer the indicators rate history be sluggish election announcement results of rates the of outcome now recent night's environment If for finally for our have may with endured still rate does Now for And they Fed's some cutting The the which year. ratios the rate to such the should continue interest ramps truly cut uncertainty for borrowers over to for rates believe and higher coverage as provide shorter-term and debt been health on debt past been discuss topic some new market has decline, cuts serve the have quarter thoughts Starting long-anticipated portfolio M&A, cycle years. has investments for and burdens Potential as past performance. rate few on begin higher key a our base a floating September, course portfolio high catalysts recent will environment. inflation if and for relief stance, time

have excited activity, M&A we in refinancing the continue we're activity the we our pipeline. and across we of previously pickup are to about and what said, reflecting meaningful As in seeing see return platform, very

activity. investment our to Turning

new of which capital companies we in of During that third investments invest first know a new well. companies allows is the lien X portfolio were primary important and third to in be continue and our part in incumbent companies. us strategy quarter, to area primarily additional existing focus. Investing we the an loans, million advantage competitive and portfolio our into quarter industries X $XX invested All the debt

continued seen However, identify in to new in these have opportunities uptick and platform companies. invest compelling to a we've new marked activity

due borrowers new continued as M&A well as of well capital Our activity as for or incremental from pipeline grown refinancing increase to in growth an overall activity. has as opportunities demand

attractive investment source as to opportunities dedicated relationships platform. continue deal the sourcing from professionals our from direct of as broader the BlackRock We well

access is complementary software human acquisition within iLobby X,XXX visitor to several clients to a these and serves portfolio of reporting, is be sole in physical we were iLobby solutions new in to a pleased iLobby, a the included specific lender on XXX. an work software are a the control company Fortune investment quarter, the countries, lien During vertical first monitoring, focused assets and in company, across asset. support perimeter. third a niche and leading and providing including enterprise this transaction XX the tracking, business, that facility management which

of or cloud-based pipeline and investments strong to managers. back-office with provider portfolio combined market. We to solutions channels. approach, a new our back-office workflow, investment sourcing leveraging and any that from end invested industry in investments by last customer tasks DocuPace relationship underwriting growth single with operational a that independent our deal is proceeds be reputation And that and $XXX this was base in during opportunity quarter. opportunities selective quarter, believe performing million robust category choosing is opportunity third gain effective risks to for a Software-as-a-Service strong industry-focused point in debt RIAs streamline market sourcing approach RIA possible from from average DocuPace quarter secular compared the And us the advantage We associated when our of a annual non-wire-house concentration. the attractive We with XX.X% a yield an sourced channel-agnostic repayment the this reduces the wealth time. At Another portfolio share XX.X% maintain weighted company quarter. we is the at as an DocuPace, allows trends the is sale they in benefiting continue administrative received an multiple in to our the with of of as we sponsor. in stable represents best broker-dealers the believe in channel of leader

portfolio focused weighted a a New we while weighted had remain tightened, experienced yield of more income was which compression first our well-diversified $X.X we XX.X%, an an our investments are $X.X XX.X%, yield of floating XX% instances, rate on lender-friendly regard of lower portfolio or quarter. In our yield million. our total existing to with each diverse loans simply the the In have investments loans than explains quarter our with or terms. size in Recurring refinance in investments fair chose contributing was and reprice at did of to X% was of invested XXX not comprised several portfolio yields broadly weaker lien end, of underwriting of value in where market we average of XX% companies a spreads were investments position of billion some environment had portfolio and risk/reward average secured to average companies in and exited approximately loans. were with XX% with loans. distributed structures XX% that standards analysis. At less disciplined this with align across deals debt structuring than not we our our total. senior

it to I'll our over liquidity and Now to turn capital financial Erik discuss and results position.

you, Thank Phil.

noted, Raj on quarter an the for basis. $X.XX net share our As investment income adjusted per was

or net non-recurring the income in PIK $X.XX. $X.XX about of in third investment detailed total or press income release, quarter earnings per Investment the of $X.XX X% Net income. Operating and Incentive financial accordance $XX.X income. other metrics and share, in $X.XX the expenses. share, million in share, included resulting recurring of losses NII were excludes $X.X and share. At unrealized fee already $X.XX which $X.XX also per the included purchase Pluralsight and prior investments from for reflecting per asset GAAP. full of low we net was the recurring the $X.XX, the which primarily amortization end the were investment previously discount and our $X.XX gains cash interest remains The income or or million were per earlier. McAfee, or per for with income Pluralsight included unrealized reflected quarter is losses amortization with restructurings million $XX.X from of totaled million dividend for share. our of the of net discount PIK were value. Net quarter income primarily of A interest including in in of McAfee, $XX.X assets for reversal adjusted $X.XX increase restructuring the adjusted discussed release the net per $X.XX our accounting quarter, This to our reconciliation cash portfolio interest at third $X.XX interest calculated in million expenses and of income our program to which equivalents. of approximately for from of $XXX of well $X.XX, million liquidity and only X.Xx total investment As of within of the of merger third $XXX at non-GAAP loan million revolver earnings capacity the fees of cash our quarter as is the realized included GAAP debt was available were net our $XXX quarter end companies $XX $XXX investments quarter other was as and were share. X.XXx, was under range XX-Q. Gross well and X.Xx. leverage million, and of million which commitments. Net Unfunded available is leverage target to X% commitments BCIC investment

cash debt gross reminder, issuing and This elected new May immediately as in second end XXXX, the we not those a debt by outstanding as were SBIC a notes than on we higher were X.XXx quarter. X.XXx. XXXX As to prepay outstanding increased the leverage, the gross that repaid to of paying was was the excluding leverage were return what than we we declined of quarters on held earning notes past notes higher due. In cash coming the prior August and of as

credit low-cost issuances weighted and includes outstanding The ample debt financing rate to have quarter X.X%. continue interest with diverse SBA X program. facilities, the at program was of that flexible an and the note unsecured on options our end We X average

to over Now call back I'll Raj. turn the

Thanks, Erik.

our same early outcome continue the goal borrowers, decreased I'd issues have acting questions, non-accruals issues have, lenders our credit in and for diligently with eye achieving like we their best last experienced identifying company to resolve possible toward comments. wrap and closing portfolio the our on some as challenges, our the our potential working team investors. Over sponsors history, Before focus also with we always up taking with possible. reviewing taking as resources is with to of and we every as the an approach to since your quarter Overall,

have robust a and into position As quarter of we opportunities. a we capital strong XXXX, of the head investment pipeline final

to selective credit-first downside attractive is continue more and disciplined the take approach core there to on with remain less covenant a competition, pricing. capital focused deploying We highly and mindset. We middle market a protected protection, where

you the great underwriting our leveraging models standards We that continue special to to keeping shareholders that financial forward invest progress. And our questions. creating and passing operator, lending deals for have on in our operate remain structure business in the with situations companies environment, look the experience teams to meet and successfully do covenants We deal call to for to management with we updated the asset-based not transactions current and that, are open and in strong and value on committed please structures.

Fargo. the Our [Operator comes first Finian of O'Shea line with Instructions] from question Wells

Congrats, the to for We the inputs changes. what and us to for return but go the could obviously that would anticipate moves that, of of there. sort unpack opening book and There's high seeing being as one return other remarks Raj, around. rest spread Raj, you on leverage NII end your you the the and on that of Phil, gauge the the curve SOFR relate the TCP. they can on to team on I wanted

Yes, it's Fin, Erik. hello,

a our us little maintain to we that last historical do yes, NII our reversing base bit, been a As out levels. the as have where of level of the higher it in that that and we level has led the part today. of point level that level rates of non-accruals on with reason bit benefited increased over maintaining little the has see to dividend see that's the why part the the end and We I'll over years. NII you expected noted, couple it's has We But return we're of and higher a X.X continue the of dividend level higher been. maintain dividend from certainly where that significant quarters, even return. last at reversing

And management in reorganization seeing changes at me. came then to that all management And style-wise, you market or this were maybe and BlackRock, in with also with -- there or middle some if credit there, the like resource-wise, on go There other effort to changes. everyone there's or private anything credit just ups anything do an for apparent helpful. the wants be on would would expand maybe regard upper that's higher

for question. Phil. Fin, Yes. Hello, the it's Thanks

what business, kind BlackRock, that our think to together is collaboration group I really and is of single into I So in referring right synergies lending of unit. direct you're Asia strong And to lending put here entire global just franchise. Europe, the and business at we've think those franchises the our a drive a U.S., natural of in across geographies the each and having evolution trying business direct

real benefits and see achieving strategy are of platform single As we focus around that and business groups being benefits. tangible provides by those consolidating the you unit part lot a there know, of around BlackRock the the a from into

opportunity So ongoing platform. It not strategy us of we benefits continue an shift. is business, to keep the investment growing our for process, as to the it see of get our optimize indication

a of opportunity get premium and core know, not the you certainly middle differentiated our you where think we yields. structures, That including referenced of focus, moving market. market, covenants, ours. We that continues origination, tremendous I which is or think a to the present amount can upper is goal into purpose differentiated as

Our comes with Dodd the Raymond from question of line James. next Robert

new luck for of Raj, roles. heading. and the in Phil you're good and Congrats, the the rest team Congrats, wherever

lending expect is asset incidence I Fin's TCPC on the things the given way put their or that impact direct -- global global of any going with of type follow-up the program, -- should on to of or mix, making we both together styles portfolio things of deals lending? you've any into have the greater -- format a into a international new a first overall to geographic maybe now One direct just question. mean,

the Yes. question. Thanks for Hello, Robert, it's Phil.

change it's -- really the expect the the we really it's don't So of mix mix are change to a much not We global because platform. to portfolio.

expect are compliance, do synergies deals whether platform around we areas, like I platform. as resources, reiterate was they source mentioning, our other thing TCPC around origination around processes, one be do across both legal benefits, what ideas, BlackRock the and today transactions, to all the other think that's is so I well for investment as the important on. But that the on we

benefit we of So a the seeing have global effort. having been sourcing

coming on in there are the U.S. feet that of portfolio, various through the markets some are So the benefits ground are in deals in absolutely the having outside that

keep that. the process high I indication the like And low us to dividend that of but decision-making special, what all mean, update? on any position? give us that you but I And mesh update particularly Or the an don't thought into why give dividend? can how you of What's it very could tax? does on on what right, is us Board, estimated that was that's kind I the an spillover spillover to question, -- $X.XX can think -- excise On the you thoughts any want you minimize recall, if the from

that I'll try to then think, will Robert, add off more and some color. I Erik, Yes, kick

the spillover, that obviously, with out-earned. think a function we've it's of I

of approach view the more excise year, we tax weigh we in a as I low-cost with always we pipeline. that opportunities think as the the can and we kind the And mean, -- off I visibility, of the loan. weigh I have end

start think I buyback weighing we'll that with share opportunities.

on a cost latter a opportunity I allocation really of its add And general cost the -- and with of you the out-earning add Erik to capital trying over then as year. part the turn a a being to color. special making But specials, is the the the are at just good to we the of decision can the on maybe other in When core to the there's excise it decision it return mitigate the function get assets. So any partial trying and have tax end to having the best spillover that assess we based year of being variety decision.

that I'll excise required just amount between to it taxes. Rob, we're required versus the balance amount the add And is avoid distribute that to that's a Yes.

cheap excise noted, Raj As cost we're capital. a fine of as tax it's incurring the

However, have requirements. those distribution of that we need requirements are and do ensure meeting we we that, minimum part to

going had prepaid of on $X.XX, I which add question. of pretty kind you I prepay And to $X.XX and longer-term mean, everything then fees, this you back is the quarter, elevated mean, associated mean, with that, which recent last it but standards. up is $X.XX activity quarter that to I by pretty pretty it the prepay that is going ramped elevated expectation is quarter, high. Is stay And coming rates elevated? component Because earnings, of NII base for the -- a rates if that's come maybe to some I there's into year, mentioned lower prepay expect next with activity price. bit on is reverse not, down, with prepay QX, mean little to down, you obviously you looking $X.XX. going it return rates but not also and it's get the normalizes, a that.

Yes.

being quarterly add add I I in over almost you just if prepays the with thing active longer. can we necessarily if say, had don't to just loans any the People anyone went referring higher, that would it. from, -- maybe a here off XX-plus level. rate comments, has that me else X last, go I'm got back historically many decades, environment, you bit. go I back years, some so is into rates a of yield. But cooled sure higher historically, speaking, you and really as to quarters not out the Let think of range -- start, we nice I'll The environment, higher getting I'm duration and know, M&A were the you're less -- little a naturally was if the $X.XX

There in The to comments, comment is anticipation there'll a his certainly Phil's M&A coming this an There is activity down. election through be behind are us. refinance rates that I prepared year. in more activity. think echo is pickup

of prior of without forward think picking we're episodic, that conditions or we more years like to predict the hard moving speculating back to it's it. But we generated don't and but very kind and in the always it's can higher in lot where do projecting, prepays conditions so feel up, been very not some illogical forecast in So prepays. a the be

on, would environment time down, always echo And is our business. history then lower nice that focus us. in relative important will had come where not focus The of thing some the also tell. on prepayment It's rights. low So even we they're we've history the that a to to if we it's very I structures most yield the rates of having

think So conditions that specifically. answer go there's being good the I without on forward question to able

then can. last if one, one And I

a market capital, on, picks while? kind M&A terms the mean, there recycling understand? of the update it's that et we're take restructured anything there in resolve if going gave on Just Or activity saying, et right? if multiyear these resolving restructure, on is having you pull faster there potential -- issues, Any that at obviously, still us cycle large, up, you I last of are, the if of is And the any change cetera. on things that? cetera. write-downs those think this a could an mean, I where I quarter mean, to I has that resolving talking expectation been it recover, -- mean, I those not businesses particular Is you the companies,

Yes.

And undergoing They post does the our outcomes shareholders situation. are as steps allow for bidder the borrowers they and asking, value, that outcome an an reorg. multiyear on for optimize feel but earlier process can that the right is processes evaluate have sometimes you otherwise best up Robert, will market there undertaking answer be in best you're would we situations are these think or we to of restructured own M&A scenarios up. or does would situations. multiyear the M&A pickup like the that undertake the get I our the restructurings. processes, up and the interested comes I is appropriate and getting are we processes, to pick and we quite didn't We and -- and confident mentioned, market M&A exit us in say the in if that of that than situations depends activity feel come think we where it some or these market to some control company require restructuring time we patience. If I restructuring has the where those the does borrower come then for that is

that that's very exits, speaking. much still accelerates I think broadly some really Whether we're these of So TBD, open-minded.

Our line the Paul next KBW. of from Johnson with comes question

with I'd in much how just us you in just various be point of thoughts the of On names? And Amazon at some kind get still your the industry, Razor part think going these for curious aggregator on the even of investment and Amazon on portfolio this less just under tell non-accrual. consolidation. aggregators the to also change Can facing we're Amazon, is in challenges I kind the

You're probably to efficiencies. realize of some these time saying to take going it's

So be I that you will -- kind these perform you'll optimism that and of foundation? companies able capture eventually what gives guess to efficiency

Phil. It's Paul. Thanks,

the evolved loans in aggregators The we leaders comprise to sector SellerX. we're the strategies structures the environment. aggregators a a path you've market think bit quite Thrasio, and this with That's still the over point. believe I about of space, X.X% the compete of liquidity we And currently the aggregator outcomes invested believe capital to evolving and, regards of past the has course, the successful at newer in investment portfolio. noticed. appropriate the So and obviously value as their for these X to fair there's Razor, With years, this to

these from term, consolidation. -- these benefit ongoing medium to will the businesses longer Over benefit

these capital cash a consolidation As those effecting costs we've as well structures drive know, -- as flow lower player and and key in that for operating to really trying drive businesses. been to improving the you

think can we're we At time over in on drive that the tremendous X.X% at So reduction. further and that it as there's and our portfolio, hard costs their that value certainly sellers, still -- they of increase remains key cost their these reduce to working and consolidate names, products, at them. focus best

average at is I presentation, kind on higher, structure. of then, cost is all debt than interest your of was And rate little I annualized were of I'm that think weighted looking cost bit a in, It your this think, X.X% quarter. the estimating liability about of the moving guess, X.X%, around your to a but we for I

of that little debt So liabilities going was anything drove just in your through a was that quarter that this cost the there higher?

borrowing notes, are of is bit did One XXXX a a coupon which refi couple incremental costs, A versus had current our quite of we our higher. things. X.X% which Yes.

was there debt because Then what were a second is interest we that versus rate would the there. So run the expense additional outstanding. cash simply you step-up factor was normally expect a higher as carrying than

cash As coming earning a interest we due versus notes were X.X%. on with were higher the the of coupon that we mentioned,

higher incremental even other But So in interest higher that you on income expense, see interest -- I side. normalize there's the guess, you should but QX.

of you And SBA I the to then any the remaining under in do is any license? guess, current apply for kind there plans, more? any have And capacity potentially work

currently $XX do Yes, license. we both. under that We million down have remaining can current our draw

In addition we -- repayments. subsidiary, some within to that, we that had have also are

that that the -- the So already essence, we've we we redeploy a drawn from continue second through the SBIC. coming from license as there And that get SBA. have more capital do to, see the deals from pipeline, to ability use we have to notes in and

[Operator Instructions] the Nolan question Our with Thalmann. next of comes line Christopher from Ladenburg

forward. well could like Raj, change? you given articulate as and to TCPC the would facing and congrats you're in the you major what going you you Phil, with I and now good challenges what that you wish Phil, see chair, working

laser-focused portfolio a ensuring That's are Wolfe, outcome. on restructurings a COO; and the great manage Dan Worrell, Jason, myself Obviously, our our Thanks, and as in optimizes well the new President; way that the Chris. we the that our non-accruals as we Patrick and question. Co-CIO,

tremendous resources of on names. are attention We and amount those deploying

positive As portfolio of when very to cycles. And that bumps, these these processes does coming expect had focused in and we out occur are our know, outcomes certainly that. hit least have we you on At historically, again. our

are debated. robust and committees are investment their very single Our highly evaluated action every discussions and in

ask So for our we're as because do way, in previously, to XX-plus and they track patience time. comments, record in we year in manifest prior we do these situations expect optimistic. the the managing But take same

focused absolutely that's on. I where think So I'm

company. And now price mining kind to price stock the stock just has the And and not looking the XXXX new at been is lows.

management it would is the results have a why in just then the not I were platform, in year-to-date, the have very stable really what's pause? actually you first I like but at pause, people? to to mean, You quality whatever. quarter And second happening. quarter, merger, ship, give quarter I lot and going and senior company feel third And and acquisition a of stuff reasonably did should not anyone the does a the this say would ride you What change off. asset I on the mean, looking the fell okay. or in say, trying

that's the same Well, and a price. stock I the comment, on fair think we've Yes. observed

of I things. a couple think

time cases, XX First of a to with this in now, some our been here as and Dan, team all, being, many I XX Jason, together. years Patrick along for have of

So the And IC of have for we stability again, miss members partnership, also voting quite believe deep mentioned in are and tremendous have but that Obviously, we will on there some been to everyone point we of consistency is amount team. our the a us dividend. a bench. the Raj's time. I'll with

to see met time shareholders. the continues that dividend. to we've allocation part of we is there's that shareholder provide this important that strategy total exceeded returns capital the our our And consistently an You'll it or be and XXth

dividend So long announced. we a specials track and our paying record we've of there have like out-earning

very we're that intently as well. So focused much on

new idea dividend things portfolio. management it help general normal management get have I reading the Final would doing the the nicely is And an fee And if explanation, like support viewing waivers question notice and dividend. from what terms I'm appreciate management mean, much trying to that? EPS. Just beyond of that supporting how the investments couldn't than right, coupon, on patient done. lower start you but that's a the extent to the I in would waivers, dividend? I

Yes.

our and So out-earning clearly, it's expect a said don't shareholder decisions and part total about like an quarter. our that long our dividend we track that, The of I makes important have we is Board returns, previously, record of each dividend to change.

merger Chris, a adviser NII to share. $X.XX or BCIC, As with fees part share portion all of a has that recall if its you below fell agreed per probably of advisory our the waive

on of deals our that That's being exceed not in exiting of couple the yields think a in So they're to higher this something But we continue though at that. Yes, look I'll added high, even ago is -- environment, and those -- environment. were -- to we'll that or there a mentioned XX.X%. we overall if years But exited discuss the supportive. declining I call, our of except is a you a got are some our history dividend the that than natural deals. meet lot on where somewhat yield rate also a that BlackRock we deals, yields, quite expect were came less rate of at in still the

note the the would is yielding on I And supplement, current also roughly current value. that the same book the on excluding dividend, NAV

So it's just there. up getting

would to That conclude the call like the remarks. closing will session. for now team the question-and-answer any to pass I back over management

your and for you. capital thank This all today's continued you for all participation on our Thank and today's dedication. support your shareholders for hard concludes to Thank I work partners like and our team would their call. call.

for you Thank participation. call. today's your concludes That

your may disconnect now You lines.