| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 15.85 | 206 |
| Intrinsic value (DCF) | 6.60 | 27 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 61.78 | 1093 |
BlackRock TCP Capital Corp. (NASDAQ: TCPC) is a leading business development company (BDC) specializing in middle-market investments, offering a diversified portfolio of debt and equity instruments. Focused on U.S.-based companies with enterprise values between $100 million and $1.5 billion, TCPC provides flexible financing solutions, including senior secured loans, mezzanine debt, and equity investments. The company targets high-growth sectors such as healthcare, technology, energy, and consumer services, aiming to generate stable income and capital appreciation for shareholders. As part of the broader BlackRock ecosystem, TCPC benefits from institutional-grade underwriting and risk management. With a market cap of approximately $654 million, TCPC operates in the competitive BDC space, leveraging its expertise in complex middle-market transactions. Its investment strategy emphasizes yield generation, with a current dividend yield of ~12.2%, making it attractive to income-focused investors. However, exposure to leveraged middle-market companies introduces credit and economic sensitivity risks.
BlackRock TCP Capital Corp. (TCPC) presents a high-yield investment opportunity with a dividend yield of ~12.2%, appealing to income-seeking investors. However, its FY 2023 financials reveal challenges, including a net income loss of -$63.1 million and diluted EPS of -$0.79, reflecting credit losses or mark-to-market adjustments in its loan portfolio. The company’s $1.12 billion debt load and leveraged structure amplify interest rate and recession risks. Positively, TCPC maintains strong liquidity ($91.6 million cash) and generated $293.1 million in operating cash flow, supporting its dividend. Investors should weigh its high yield against sector-wide risks like rising defaults in middle-market lending and competition from private credit funds. TCPC’s BlackRock affiliation provides underwriting advantages, but its performance remains tied to cyclical middle-market health.
TCPC competes in the crowded BDC sector, where scale, cost of capital, and underwriting rigor differentiate performance. Its competitive edge stems from its BlackRock affiliation, which provides access to proprietary deal flow and risk management resources. However, TCPC’s middle-market focus exposes it to higher default risks compared to larger BDCs with senior-secured portfolios. The company’s ability to source complex, high-yield deals (e.g., mezzanine debt) is a strength, but its 1.082 beta indicates higher volatility than peers. TCPC’s $10M–$35M investment range targets underserved niches, yet this specialization limits diversification. Competitors with lower leverage (e.g., ARCC) may outperform in downturns. TCPC’s dividend sustainability hinges on portfolio yield (~10–12%), but rising rates could pressure borrower refinancing. Its competitive position is middle-tier: stronger than smaller BDCs but lacking the scale of giants like Ares Capital.