BlackRock TCP Capital Corp's Q4 2024: Navigating Dividend Strategies, Fee Waivers, and Non-Accrual Impacts on EPS

These are the key contradictions discussed in BlackRock TCP Capital Corp's latest 2024Q4 earnings call, specifically including: Dividend Strategy, Management Fee Waiver, and Non-Accrual Impacts on EPS:



Financial Performance Decline:
- BlackRock TCP Capital Corp reported full-year adjusted net investment income of $1.52 per share in 2024, down from $1.84 per share in 2023.
- The decline was primarily due to lower base rates, an increase in non-accruals, and higher expenses.

Markdowns and Non-Accruals:
- In Q4 2024, non-accruals represented 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter.
- Significant markdowns were reported in companies like Razor, Securus, and Astra, impacting portfolio performance.

Dividend Adjustment:
- The company reduced its regular dividend to $0.25 per share for Q1, maintaining a sustainable level based on the current earnings power of the portfolio.
- Special dividends were declared for Q1, Q2, and Q3, with the aim of providing strong total shareholder returns.

Investment Strategy and Market Environment:
- The company maintained a focus on senior secured loans and emphasized portfolio diversification, with 91.2% of the portfolio in senior secured loans and 83.6% in first lien loans.
- The current market environment exhibits tight spreads and a slower deal environment, impacting new investment opportunities.