BlackRock TCP Capital Corp., formerly recognized as Tennenbaum Capital Partners, stands as a prominent specialty finance company dedicated to middle-market lending. Operating as a business development company (BDC) under the Investment Company Act of 1940, and trading on NASDAQ as “TCPC”, the company’s core objective is to generate substantial total returns through a blend of current income and capital appreciation, always prioritizing principal protection. The firm strategically invests primarily in the debt of private, middle-market businesses, typically those with enterprise values ranging from $100 million to $1.5 billion. These often include intricate situations that demand deep industry-specific knowledge. While their investment focus leans towards senior debt instruments, BlackRock TCP Capital Corp. maintains the adaptability to offer financing solutions across all levels of a company’s capital structure. Their commitment to rigorous due diligence, proactive investment oversight, and a long-term investment horizon positions them as a dependable capital partner for both companies and sponsors.
The investment activities of BlackRock TCP Capital Corp. are guided by its investment advisor (the “Advisor”), an indirect, fully-owned subsidiary of BlackRock, Inc. This affiliation provides BlackRock TCP Capital Corp. with significant advantages, leveraging the Advisor’s extensive expertise, the diverse backgrounds of its investment professionals, a proprietary deal sourcing network, and a consistently robust investment process. BlackRock’s established credit proficiency, strong brand reputation, and global reach enhance TCPC’s capabilities, providing access to greater resources for delivering comprehensive financial solutions to middle-market companies.
Investment Strategy Deep Dive
At the heart of BlackRock TCP Capital Corp.’s strategy, building upon the foundations laid by Tennenbaum Capital Partners, is the origination and strategic investment in debt securities of thriving middle-market companies. This approach is underpinned by the Advisor’s proven history of originating and participating in the primary syndication of approximately $38.4 billion in leveraged loans to 704 companies since 1999. BlackRock TCP Capital Corp. strategically targets companies that demonstrate established market positions, possess proven and differentiated product offerings, and maintain robust regional or national operational footprints. Although the primary emphasis is on directly originated loans, the company also retains the agility to pursue compelling secondary-market investment opportunities.
BlackRock TCP Capital Corp.’s investment focus is predominantly within the U.S. market. This regional emphasis is driven by the belief that the Advisor’s specialized insights, complementary skill sets, and extensive investment experience provide a distinct competitive edge within this landscape. Furthermore, the company strategically targets industries where macroeconomic trends and existing in-depth industry expertise converge to present an attractive risk-reward balance.
