BlackRock TCP Capital Corp. Investor Presentation March 31, 2019 - PowerPoint PPT Presentation

BlackRock TCP Capital Corp. Investor Presentation March 31, 2019

Forward Looking Statements Prospective investors considering an investment in BlackRock TCP Capital Corp. should consider the investment objectives, ris ks and expenses of the Company carefully before investing. This information and other information about the Company are available in the Company's filings with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website at www.sec.gov and the Company's website at http://www.tcpcapital.com. Prospective investors should read these materials carefully before investing. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. These forward-looking statements do not meet the safe harbor for forward-looking statements pursuant to Section 27A of the Securities Act or Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in general economic conditions or changes in the conditions of the industries in which the Company makes investments, risks associated with the availability and terms of financing, changes in interest rates, availability of transactions, and regulatory changes. Certain factors that could cause actual results to differ materially from those contained in the forward- looking statements are included in the "Risk Factors" section of the Company’s Form 10 -K for the year ended December 31, 2018, and the Company's subsequent periodic filings with the SEC. Copies are available on the SEC's website at www.sec.gov and the Company's website at http://www.tcpcapital.com. Forward-looking statements are made as of the date of this presentation, or as of the prior date referenced in this presentation, and are subject to change without notice. The Company has no duty and does not undertake any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise. 2

BlackRock TCP Capital Corp – Key Highlights As of March 31, 2019 Who we are What we do How we do it $1.6 billion diversified portfolio Advised by Tennenbaum Capital Value-oriented investing primarily composed of directly Partners (“TCP”) with a 20-year focused on middle-market originated senior secured floating rate history of success in direct lending direct lending loans with 11.4% weighted average effective yield on debt portfolio (1) Experienced team that sources Diversified low cost Full dividend coverage proprietary deal flow and applies a of financing with $1.0 billion leverage in all 28 quarters as a consistent and rigorous investment program at a 4.43% weighted average public company process interest rate BlackRock platform provides Strong governance and shareholder a broad origination network, Outperformed the Wells Fargo BDC alignment with an investor friendly information advantage, and access to a Index by 37% since IPO driven by advisory fee and share purchases by demonstrated set of proprietary strong historical returns management and the board investment opportunities (1) Weighted average annual effective yield includes amortization of deferred debt origination and end-of-term fees and accretion of original issue discount, but excludes market discount, any prepayment and make-whole fee income, and any debt investments that are distressed or on non-accrual status. Weighted average effective yield on the total portfolio (including debt investments that are distressed or on non-accrual status and equity investments) was 11.0% as of 3/31/2019. Past performance does not guarantee future returns. 3

2019 Year to Date Financial and Portfolio Highlights As of March 31, 2019, unless otherwise noted Dividend Coverage Net investment income of $0.40; dividend of $0.36 per share ▪ Disciplined Deployment of $150 million gross; $4 million net of dispositions ▪ Deployment Effective yield on the debt portfolio of 11.4% (1) ▪ Well Positioned 92% of the total portfolio consists of senior secured debt ▪ and Diverse Portfolio 92% of the debt portfolio is floating rate ▪ Largest position is just 3% of our portfolio ▪ Strong Credit Profile No loans on non-accrual as of March 31, 2019 ▪ Increased our credit facility capacity by $100 million post quarter-end ▪ Leverage Capacity Reduced the rate on our SVCP facility by 25 bps and extended the ▪ maturity to 2023 effective May 6, 2019 (1) Weighted average annual effective yield includes amortization of deferred debt origination and end-of-term fees and accretion of original issue discount, but excludes market discount, any prepayment and make-whole fee income, and any debt investments that are distressed or on non-accrual status. Weighted average effective yield on the total portfolio (including debt investments that are distressed or on non-accrual status and equity investments) was 11.0% as of 3/31/2019. Past performance does not guarantee future returns. 4

Well-Covered and Consistent Dividend Net investment income of $0.40 per share Declared Q2 2019 dividend of $0.36 in Q1 2019 per share Quarterly dividend of $0.36 per share paid Payable on June 28, 2019 to holders of record on March 29, 2019 as of June 14, 2019 Dividend covered in all 28 quarters since inception 2019 2012 (1,2) 2013 2014 2015 2016 2017 2018 Q1 Per Share Regular dividend $1.04 $1.43 $1.44 $1.44 $1.44 $1.44 1.44 $0.36 Net investment income $1.42 $1.65 $1.55 $1.64 $1.51 $1.59 1.59 $0.40 Regular dividend coverage 137% 115% 108% 114% 105% 110% 110% 111% Special dividend $0.05 $0.10 $0.10 (1) Incentive compensation was waived prior to January 1, 2013. (2) Dividends and net investment income in 2012 reflect the 3 quarters post-IPO (Q2, Q3 and Q4). There is no guarantee that quarterly distributions will continue to be made at historical levels. 5

Conservatively Positioned and Diversified Portfolio Majority of our portfolio 11.4% weighted $1.6 billion 92% of portfolio companies contribute average effective yield portfolio fair value is senior secured debt <1% to recurring income on debt portfolio (1) Diversified Income Contribution Industry Diversification Utility System Construction 1.0% Other 5.7% Other Manufacturing 1.1% 51 Wired Telecom 1.1% Publishing1.2% Diversified Software 22.4% Air Transportation 1.3% # of portfolio companies Credit Related Activities 1.3% contributing (2) Radio and Telev ision Broadcasting 1.5% Electronic Component Manufacturing 1.5% Other Inf ormation Services 1.6% 27 Other Telecom 1.6% Other Real Estate Activities 1.6% Building Equipment Contractors 2.0% Data Processing & Educational Support Services 2.1% Hosting Services 11.9% Healthcare 2.4% 8 Mgmt, Scientific, and Technical Consulting 2.4% 4 Business Support Services 2.4% Financial Investment Activities 7.0% Scientific R&D Services 2.4% Computer Systems Design & Related Services 2.8% Insurance 5.7% Equipment Leasing 3.1% Lessors of Nonfinancial Licenses 5.6% <1% 1% - 2% 2% - 3% 3% Credit (Nondepository) 3.5% Advertising, Public Relations and Marketing 3.8% % contribution to recurring income (1) Weighted average annual effective yield includes amortization of deferred debt origination and end-of-term fees and accretion of original issue discount, but excludes market discount, any prepayment and make-whole fee income, and any debt investments that are distressed or on non-accrual status. Weighted average effective yield on the total portfolio (including debt investments that are distressed or on non-accrual status and equity investments) was 11.0% as of 3/31/2019. (2) Excludes non-income producing equity investments Past performance does not guarantee future returns. 6

Strategically Positioned Balance Sheet Predominantly Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate 8% 36% Fixed Rate Fixed Rate Floating Rate Floating Rate 64% 92% Positive annual impact on net income of base rate increases in interest rates (1) Basis Point Change Net Investment Income Net Investment Income Per Share Up 300 basis points +$35,615,451 +$0.61 Up 200 basis points +$23,743,634 +$0.40 Up 100 basis points +$11,871,817 +$0.20 Down 100 basis points ($11,871,817) ($0.20) Down 200 basis points ($20,348,945) ($0.35) (1) Assumes concurrent contractual rate resets for assets and liabilities, and excludes the related incentive compensation impact. Actual results may differ. Please refer to page 69 of the Company’s 10 -Q as of March 31, 2019. 7

Strong Track Record of Positive Performance Book Value per Share and Dividends Paid As of 3/31/2019: Book Value per Share Cumulative Dividends Paid per Share (Post IPO) $26.00 $24.46 $24.00 $22.00 $20.00 $10.28 $18.00 $16.00 $14.00 $14.18 $12.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q3-18 Q1-19 Past performance does not guarantee future returns. 8