Key Takeaways
- • BlackRock TCP Capital Corp. (NASDAQ: TCPC) reported GAAP net investment income of $13.4 million, or $0.16 per diluted share, for the quarter ended September 30, 2026, below its $0.17 regular dividend; adjusted net investment income was $12.5 million, or $0.15 per share.
- • Net decrease in net assets from operations was $66.8 million, or $0.80 per share, driven largely by $63.7 million in realized losses from the Continuation Vehicle transaction.
- • Net asset value per share fell to $5.61 from $6.58 at June 30, 2026, while non-accrual investments rose to 3.4% of portfolio fair value (14.2% at cost) from 1.6% (7.4% at cost).
- • Net leverage declined sharply to 0.16x from 1.38x, following the August 4, 2026 sale of 95% of a continuation vehicle holding about $524 million of investments across 78 portfolio companies to Pantheon-sponsored funds.
- • The Board declared a $0.17 per share fourth-quarter dividend payable December 31, 2026, while conducting an ongoing strategic review aimed at the best outcome for shareholders.
Summary
BlackRock TCP Capital Corp. reported its third-quarter 2026 results for the period ended September 30, 2026, and filed its Form 10-Q with the U.S. Securities and Exchange Commission. On a GAAP basis, net investment income was $13.4 million, or $0.16 per diluted share, which did not cover the $0.17 per share regular dividend paid on September 30, 2026. Adjusted net investment income, which excludes amortization of purchase accounting discount from the 2024 merger with BlackRock Capital Investment Corporation, was $12.5 million, or $0.15 per share.
The quarter's GAAP net decrease in net assets from operations was $66.8 million, or $0.80 per share, compared with a $1.7 million net increase in the prior quarter. Net realized losses totaled $74.5 million, or $0.89 per share, including $63.7 million in losses from the Continuation Vehicle transaction. Net unrealized losses were $4.3 million, primarily reflecting an $11.5 million markdown on Job and Talent. Net asset value per share declined to $5.61 from $6.58 at June 30, 2026, and net assets fell to $471.0 million from $552.0 million.
As previously announced, the company completed on August 4, 2026 the sale of 95% of the equity interests in a vehicle holding approximately $524 million of investments across 78 portfolio companies to funds sponsored by Pantheon, which the company described as a global leader in private credit secondaries. Management stated that repayment activity and proceeds from the sale significantly reduced leverage and enhanced portfolio liquidity. Net leverage fell to 0.16x from 1.38x. Investments on non-accrual status represented 3.4% of the portfolio at fair value and 14.2% at cost, up from 1.6% and 7.4%, respectively.
As of September 30, 2026, the portfolio comprised 126 companies with a fair value of approximately $543.5 million, of which 79.6% was first-lien senior secured debt and equity represented about 20.4%. The weighted average yield on the debt portfolio was approximately 11.1%, and on the total portfolio 9.4%. Available liquidity was approximately $511.2 million. Chairman and CEO Jason Mehring said these steps place TCPC on a strong foundation as the Board conducts its ongoing strategic review. On November 5, 2026, the Board declared the $0.17 fourth-quarter dividend, payable December 31, 2026 to holders of record as of December 17, 2026.
The quarter's GAAP net decrease in net assets from operations was $66.8 million, or $0.80 per share, compared with a $1.7 million net increase in the prior quarter. Net realized losses totaled $74.5 million, or $0.89 per share, including $63.7 million in losses from the Continuation Vehicle transaction. Net unrealized losses were $4.3 million, primarily reflecting an $11.5 million markdown on Job and Talent. Net asset value per share declined to $5.61 from $6.58 at June 30, 2026, and net assets fell to $471.0 million from $552.0 million.
As previously announced, the company completed on August 4, 2026 the sale of 95% of the equity interests in a vehicle holding approximately $524 million of investments across 78 portfolio companies to funds sponsored by Pantheon, which the company described as a global leader in private credit secondaries. Management stated that repayment activity and proceeds from the sale significantly reduced leverage and enhanced portfolio liquidity. Net leverage fell to 0.16x from 1.38x. Investments on non-accrual status represented 3.4% of the portfolio at fair value and 14.2% at cost, up from 1.6% and 7.4%, respectively.
As of September 30, 2026, the portfolio comprised 126 companies with a fair value of approximately $543.5 million, of which 79.6% was first-lien senior secured debt and equity represented about 20.4%. The weighted average yield on the debt portfolio was approximately 11.1%, and on the total portfolio 9.4%. Available liquidity was approximately $511.2 million. Chairman and CEO Jason Mehring said these steps place TCPC on a strong foundation as the Board conducts its ongoing strategic review. On November 5, 2026, the Board declared the $0.17 fourth-quarter dividend, payable December 31, 2026 to holders of record as of December 17, 2026.
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