BlackRock TCP Capital Corp. (NASDAQ: TCPC)

BlackRock TCP Capital Corp is an externally managed closed end non diversified management investment company. It has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to achieve high total returns through current income and capital appreciation with an emphasis on principal protection. The company primarily invests in debt securities of middle market companies which it defines as those with enterprise values between one hundred million dollars and one point five billion dollars. While the focus is on privately negotiated debt investments the company may also make investments across the capital structure including equity interests such as preferred or common stock and warrants or options received in connection with its debt deals.

The company generates revenue mainly from interest payments on its debt investments. It also earns origination and similar fees when it structures and closes loans. Additional returns come from equity appreciation through options warrants conversion rights or direct equity holdings in portfolio companies. The company may realize gains from the sale or disposition of its investments.

The company operates within the business development company sector focusing on middle market lending. Its competitive advantages stem from the investment expertise of its advisor Tennenbaum Capital Partners LLC and the broader resources of BlackRock Inc. The advisor provides proprietary deal flow a rigorous investment process and experienced professionals who have worked across multiple credit cycles. BlackRock’s acquisition of HPS Investment Partners expanded the private financing solutions platform giving the company access to a larger sourcing network and enhanced underwriting capabilities. These strengths allow the company to compete effectively with other BDCs that target similar middle market opportunities.

The company’s customers are the middle market businesses that receive its debt and equity financing. These borrowers are primarily privately held United States companies with enterprise values in the defined middle market range. The company does not disclose the names of individual portfolio companies in its public filings.