BlackRock TCP Capital Sells $523 Million Portfolio Stake
The sale is expected to cut net leverage to about 0.4x and trim NAV by $0.68 a share.
BlackRock TCP Capital Corp. (TCPC) agreed on August 4 to sell 95% of a continuation vehicle holding about $523 million of investments across 78 portfolio companies to funds sponsored by Pantheon, a private credit secondaries manager, and to retain a 5% interest.
The assets represent about 48% of the fair market value of the company’s debt portfolio immediately before the deal. The base purchase price was 95% of gross fair value as of December 31, 2025, subject to customary pre-closing adjustments. The price allowed the company to realize a substantial premium relative to the value implied by its current share price. The board obtained a fairness opinion from Lincoln International.
The transaction generated about $152 million in gross proceeds. Together with investment repayments received after June 30, the company expects net leverage to fall from 1.38x to about 0.4x, and to less than 0.3x after an already announced portfolio company paydown. Unfunded commitments are expected to drop below $40 million. The sale is expected to reduce net asset value by about 10.4%, or $0.68 a share, based on June 30 NAV.
The deal meaningfully accelerates the company’s effort to strengthen its financial position and reshape the portfolio. Chairman, chief executive and co-chief investment officer Phil Tseng said it increases financial flexibility by lowering leverage and enhancing liquidity. The board engaged Keefe, Bruyette & Woods, a Stifel company, to evaluate how to use the added capacity, including possible reinvestment, share repurchases, strategic combinations, or an orderly realization of assets.
For the quarter ended June 30, 2026, GAAP net investment income was $18.1 million, or $0.22 a share, which exceeded the $0.17 regular dividend paid on June 30. Adjusted net investment income was $17.5 million, or $0.21 a share.
Net increase in net assets from operations on a GAAP basis was $1.7 million, or $0.02 a share, after a $16.3 million, or $0.19 a share, net decrease in the quarter ended March 31, 2026. Net asset value per share was $6.58 as of June 30, compared with $6.72 at March 31.
Investments on non-accrual status were 1.6% of the portfolio at fair value and 7.4% at cost as of June 30, down from 2.8% at fair value and 7.6% at cost at March 31. Net leverage inclusive of SBA debentures was 1.38x.
The consolidated portfolio consisted of debt and equity positions in 134 companies with a fair value of about $1.3 billion, of which 91.5% was senior secured debt and 89.8% first lien. Equity positions were about 8.5%. The weighted average annual effective yield of the debt portfolio was about 11.2%, and of the total portfolio about 10.5%.
During the three months ended June 30, the company invested about $25.0 million and received about $111.6 million in proceeds from sales or repayments. New investments had a weighted average effective yield of 9.4%; exited investments had a yield of 10.9%. Total investment income was about $40.0 million, or $0.48 a share. Operating expenses were about $21.9 million, or $0.26 a share, including $15.0 million of interest and other debt expenses and $4.2 million of base management fees.
Net realized loss on investments and foreign currency was $14.8 million, or $0.18 a share, comprised primarily of $10.0 million of losses from the exit of AutoAlert, partially offset by a $2.4 million realized gain from paydowns at par in Thras.io. Net unrealized gain was $1.3 million, or $0.01 a share, reflecting an $8.0 million reversal of previously recognized unrealized losses from the AutoAlert exit, a $3.3 million reversal related to Thras.io paydowns, and a $2.9 million unrealized gain on Job and Talent, partially offset by unrealized losses on Pluralsight, PVHC, and Zilliant.
Available liquidity was about $533.7 million as of June 30, including about $376.2 million of capacity under the leverage program and $157.5 million in cash. The combined weighted-average interest rate on debt outstanding was 6.03%.
The board declared a third-quarter dividend of $0.17 a share, payable on September 30, 2026, to stockholders of record as of September 16.