TCPC Posts $66.8 Million Third-Quarter Operating Loss

The Tip Desk · November 5, 2026 · 4 min read

Third-quarter net investment income of $0.16 a share missed the $0.17 dividend as a $63.7 million Continuation Vehicle loss drove a $66.8 million operating loss.

BlackRock TCP Capital Corp. (TCPC) reported $28.5 million in total investment income and a $66.8 million, or $0.80 a share, net decrease in net assets from operations for the three months ended September 30, 2026, after an August sale of most of a large Continuation Vehicle to Pantheon funds and a wave of other exits.

The specialty finance company, which lends to middle-market firms, recorded a net realized loss of $74.5 million, or $0.89 a share, comprised primarily of $63.7 million of losses from the Continuation Vehicle transaction, plus $4.2 million and $3.8 million losses on Paramount and Emerald, offset by $4.7 million of gains on Domo. Net unrealized loss was $4.3 million, or $0.05 a share, including an $11.5 million unrealized loss on Job and Talent. Net realized and unrealized losses on investments and foreign currency were $78.8 million.

On August 4, the company completed the sale of 95% of the equity interests in a vehicle holding about $524 million of investments across 78 portfolio companies. Sales and repayments totaled $681.4 million in the quarter, including $457.5 million of investments, net of losses, sold through that transaction. New investments were $6.2 million.

GAAP net investment income fell to $13.4 million, or $0.16 a share, from $18.5 million, or $0.22 a share, in the first quarter, and no longer covered the $0.17 regular dividend paid September 30. Adjusted net investment income, which excludes purchase-discount amortization from the 2024 BlackRock Capital Investment Corporation merger, was $12.5 million, or $0.15 a share.

Total investment income was $28.5 million, or $0.34 a share, including $0.20 a share of recurring cash interest, $0.08 a share of prepayment premiums and related OID and exit-fee amortization, $0.02 a share of recurring OID and exit-fee amortization, $0.03 a share of PIK interest and $0.01 a share of dividends. Operating expenses were $15.1 million, or $0.18 a share, including $9.4 million, or $0.11 a share, of interest and other debt expenses and $3.0 million, or $0.04 a share, of base management fees. Excluding interest and other debt expenses, annualized third-quarter expenses were 4.4% of average net assets. No incentive compensation was accrued.

The consolidated portfolio consisted of 126 companies with a $543.5 million fair value as of September 30, of which 79.6% was senior secured debt and 20.4% equity. Weighted average annual effective yield on the debt portfolio slipped to 11.1% from 11.2% at June 30, and total-portfolio yield fell to 9.4% from 10.5%. New investments yielded 11.1% and exits 10.9%.

Non-accrual investments rose to 3.4% of the portfolio at fair value and 14.2% at cost, from 1.6% at fair value and 7.4% at cost as of June 30, still below the 4.0% fair-value level at December 31, 2025. Twelve companies were on non-accrual.

Net leverage collapsed to 0.16x from 1.38x at June 30, after the Continuation Vehicle sale. Available liquidity was about $511.2 million, including $258.1 million of unused leverage capacity and $253.1 million of cash. Combined weighted-average interest on outstanding debt was 6.90%. Realized loss on extinguishment of debt was $1.3 million, or $0.02 a share.

Net asset value per share was $5.61 as of September 30, compared with $6.58 as of June 30 and $6.72 at March 31. Net assets were $471.0 million. Chairman and Chief Executive Officer Jason Mehring said strong repayment and realization activity, together with proceeds from the portfolio sale, significantly reduced leverage and enhanced liquidity, and that the Board is conducting an ongoing strategic review.

The Board declared a fourth-quarter dividend of $0.17 a share, payable December 31, 2026. No shares were repurchased under the $50.0 million plan re-approved April 29, 2026.