BlackRock TCP Capital Corp. (TCPC): Business Model Canvas [Dec-2025 Updated]

You're digging into how BlackRock TCP Capital Corp. (TCPC) actually makes its money as a Business Development Company (BDC) in this tricky late-2025 credit environment, and frankly, it's less magic and more disciplined structure. Honestly, their model is built on being BlackRock's dedicated middle-market lending platform, managing a $1.7 billion portfolio across 149 companies, with a clear focus on senior secured loans-89.7% of the portfolio-and floating-rate debt, which is 94.2% of their borrowings, giving them solid protection right now. It's a tight, advisor-driven machine. Dive into the full Business Model Canvas below to see exactly how they source deals, structure their costs, and deliver that Net Investment Income of $27.3 million they posted in Q3 2025.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power BlackRock TCP Capital Corp.'s direct lending engine. These aren't just vendors; they are structural advantages.

BlackRock, Inc. (BLK) as the external advisor is the foundational partnership. BlackRock, Inc. itself is massive, managing approximately $12.53 trillion in assets under management as of June 30, 2025. This relationship provides TCPC with the benefit of being managed by the world's largest asset manager, which brings significant operational scale and brand recognition.

The direct support comes from the larger BlackRock ecosystem, specifically the Private Debt platform. This platform is a key resource for deal flow and expertise. Here's a look at the scale:

The creation of the Private Financing Solutions (PFS) platform, which combines private credit and other solutions, is a direct result of BlackRock's recent acquisition of HPS. This platform is designed to maximize collaboration and effectiveness in deal sourcing.

Financial institutions providing low-cost credit facilities are crucial for TCPC's leverage program. You need cheap, reliable funding to juice returns in this business. As of Q2 2025, TCPC's leverage program included:

• 3 low-cost credit facilities
• 3 unsecured note issuances
• An SBA program

The total diverse leverage program for BlackRock TCP Capital Corp. stood at $1.6 billion as of March 31, 2025. More recently, in July 2025, a specific facility (TCPC Funding II, LLC) was extended/amended to a $200 million size to support future activity.

Private equity sponsors and deal sources for origination provide the actual investment opportunities. The advisor's long-term relationships with borrowers and deal sources are a key part of the value proposition. For instance, the advisor has invested across more than 730 companies since its inception through the end of 2024. As of September 30, 2025, BlackRock TCP Capital Corp.'s portfolio was spread across 149 portfolio companies with a total fair value of approximately $1.7 billion. The PFS platform centralizes sourcing teams to maximize this deal flow.

For third-party valuation providers for portfolio assessment, while specific names aren't always public, the process relies on external checks. For example, as of March 31, 2025, 90% of TCPC's portfolio was invested in senior secured debt. The weighted average effective yield on the performing debt portfolio was 12.2% as of March 31, 2025. The weighted average annual effective yield of the debt portfolio was approximately 11.5% as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Key Activities

You're looking at the core engine of BlackRock TCP Capital Corp., the day-to-day actions that drive their business as a specialty finance company. It's all about deploying capital into middle-market debt and managing the resulting assets.

The primary activity is the origination and underwriting of senior secured loans directly to performing middle-market companies. This focus on direct lending is key to their strategy. As of September 30, 2025, the weighted average annual effective yield on their debt portfolio stood at approximately 11.5%. To manage interest rate risk, 94.2% of their debt investments at fair value carried floating interest rates as of that same date.

BlackRock TCP Capital Corp. actively manages a diversified portfolio. As of September 30, 2025, the portfolio consisted of debt and equity positions across 149 portfolio companies. The total fair value of this investment portfolio was approximately $1.7 billion. This management activity is heavily weighted toward the most secure parts of the capital structure, which is a deliberate choice for principal protection.

A critical activity involves the proactive management and restructuring of challenged credits. This is an ongoing effort to maintain portfolio quality. As of September 30, 2025, debt investments on non-accrual status represented 3.5% of the consolidated portfolio at fair value. This showed improvement, down from 3.7% at the end of the second quarter of 2025 and 5.6% at the end of 2024. The investment team also focuses on diversification; for instance, the average position size for new investments in the current year was $7.8 million, down from $11.7 million at the end of 2024.

Capital raising and structure management is another key function. BlackRock TCP Capital Corp. manages its liabilities to support investment activity and meet obligations. Subsequent to the end of the second quarter, the company repaid the remaining $92 million outstanding of its 2025 notes. Furthermore, they extended the maturity of their $200 million funding to credit facility at the end of July 2025. The company is regulated as a Business Development Company (BDC) under the Investment Company Act of 1940, which dictates many of its operational constraints.

Fulfilling BDC regulatory requirements includes managing leverage and ensuring shareholder distributions. As of September 30, 2025, net regulatory leverage was 1.20x. For the third quarter ended September 30, 2025, the Board declared a regular dividend of $0.25 per share and a special dividend of $0.04 per share. This was supported by GAAP net investment income of $27.3 million, or $0.32 per share on a diluted basis for that quarter. The Net Asset Value per share was $8.71 as of September 30, 2025. The advisor also waived $1.8 million in management fees for the three months ended September 30, 2025.

• Originate senior secured debt across middle-market companies.
• Maintain a portfolio of 149 companies as of September 30, 2025.
• Manage non-accruals down to 3.5% of fair value by Q3 2025.
• Manage debt maturities, such as repaying $92 million of 2025 notes.
• Declare regular dividends of $0.25 and special dividends of $0.04 per share for Q4 2025.
• Maintain net regulatory leverage at 1.20x as of September 30, 2025.

Finance: draft the Q4 2025 capital deployment forecast by next Wednesday.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Key Resources

You're looking at the core assets BlackRock TCP Capital Corp. (TCPC) relies on to execute its middle-market lending strategy. These aren't just line items; they are the engine room.

BlackRock's extensive global sourcing and due diligence network

The primary resource is the backing of BlackRock, Inc. itself. This provides an unmatched scale for deal flow and expertise access. The sheer size of the parent organization is a key differentiator, offering a deep bench for complex underwriting.

• BlackRock, Inc. Assets Under Management as of March 31, 2025: approximately $11.6 trillion.
• BlackRock's Private Debt platform Assets Under Management as of December 31, 2025: approximately $63 billion.

Experienced in-house legal and investment expertise

TCPC benefits from the deep, cycle-tested experience of its advisor, Tennenbaum Capital Partners, LLC, a subsidiary of BlackRock. This isn't just theoretical knowledge; it's built on years of deploying capital across various market conditions.

Here's a quick look at the advisor's track record, which underpins the current resource base:

The firm emphasizes its long-term relationships with deal sources, which feed directly into its pipeline. Also, the in-house legal expertise is a stated resource for managing complex transactions.

Financial and Capital Structure Resources

The balance sheet and access to funding are critical resources for a specialty finance company. TCPC maintains a structure designed for stability and deployment flexibility.

• Total investment portfolio fair value as of September 30, 2025: approximately $1.7 billion.
• Diversified leverage program total capacity: $1.6 billion.
• Available liquidity as of September 30, 2025: approximately $527.7 million.
• Net regulatory leverage as of September 30, 2025: 1.20x.

The structure of the debt within the leverage program is also a key resource, with 67% of outstanding leverage being unsecured as of March 31, 2025.

Publicly traded stock (NASDAQ: TCPC) for permanent capital

Being a publicly traded entity on the NASDAQ under the ticker TCPC provides access to permanent capital, which is essential for a Business Development Company (BDC). This structure allows the company to raise equity capital from a broad investor base, supporting its investment mandate without the maturity constraints of private funds.

Key stock and valuation data as of late 2025 reports:

Finance: draft 13-week cash view by Friday.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors choose BlackRock TCP Capital Corp. for their capital allocation, especially given the current market structure as of late 2025. The value proposition centers on delivering consistent income while prioritizing the safety of your principal.

The primary draw is the potential for high current income, backed by solid dividend coverage from investment performance. For the third quarter ended September 30, 2025, BlackRock TCP Capital Corp. reported GAAP net investment income of $0.32 per share on a diluted basis. This comfortably out-earned the regular quarterly dividend of $0.25 per share paid to stockholders. Management declared a fourth quarter dividend of $0.25 per share, payable on December 31, 2025. This focus on income is paired with the goal of capital appreciation, though the Net Asset Value (NAV) per share remained stable at $8.71 as of September 30, 2025, flat from the previous quarter.

Shareholders gain direct access to private credit investments that are typically unavailable to the general public. As of September 30, 2025, the investment portfolio held debt and equity positions across 149 portfolio companies, representing a total fair value of approximately $1.7 billion. This provides you with exposure to the middle market through a platform with over 20 years of experience investing through multiple market cycles.

Interest rate protection is a key structural benefit. BlackRock TCP Capital Corp. employs a floating-rate debt structure to guard against rising rates. As of September 30, 2025, approximately 94.2% of the debt portfolio at fair value carried floating interest rates. Furthermore, 95.2% of those floating-rate debt investments included interest rate floors, giving you a defined downside protection on the interest income stream.

The focus on capital preservation is evident in the portfolio's construction, leaning heavily on senior positions. As of the third quarter end, 89.7% of the total portfolio was invested in senior secured debt. To be fair, this is further reinforced by the fact that 83.0% of the total portfolio was in first lien positions. The company has shown tangible progress in credit quality, with non-accruals declining to 3.5% of the portfolio at fair value as of September 30, 2025, down from a peak of 5.6% in the fourth quarter of 2024.

For middle-market companies, BlackRock TCP Capital Corp. offers long-term, flexible financing solutions. The weighted average annual effective yield on the debt portfolio was approximately 11.5% as of September 30, 2025. New investments originated during the third quarter of 2025 carried a weighted average effective yield of 10.1%. The company lends primarily to businesses with established market positions and sustainable competitive advantages.

Here's a quick look at how the portfolio is structured to deliver these value propositions:

• Debt positions represented approximately 90% of the portfolio fair value.
• Equity positions accounted for approximately 10.3% of the portfolio.
• The weighted average annual effective yield on the debt portfolio was 11.5%.
• Total assets stood at approximately $1.8 billion as of September 30, 2025.

The structure of the debt portfolio is central to the income and protection proposition:

The operational strength supporting these values includes a deep team. BlackRock TCP Capital Corp. benefits from:

• 32 dedicated investment professionals.
• 120+ Capital Markets and Private Equity Partners teams.
• 120+ sector-focused platform credit research professionals.

Finance: draft 13-week cash view by Friday.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Customer Relationships

BlackRock TCP Capital Corp. maintains direct, long-term relationships with its core customer base: middle-market borrowers and their sponsors. The focus is on lending primarily to companies with established market positions and sustainable competitive advantages, investing across industries where the team has significant knowledge and expertise. This relationship is built on providing direct lending, often in the form of senior secured debt.

As of September 30, 2025, the investment portfolio consisted of debt and equity positions in 149 portfolio companies. The relationship depth is reflected in the portfolio's structure and yield metrics as of that date.

Active engagement with management teams and sponsors of portfolio companies is key to sourcing and managing these assets. The team works closely with borrowers and their sponsors to optimize recovery value, especially in challenged credits. For instance, during the three months ended September 30, 2025, BlackRock TCP Capital Corp. invested approximately $63.1 million, comprised of new investments in 5 new and 2 existing portfolio companies. One investment example from Q2 2025 noted that the credit facility was sourced directly from the sponsor.

For public shareholders, the Investor Relations team manages communication and capital return expectations. The company declared a regular dividend of $0.25 per share for the fourth quarter, payable on December 31, 2025. This was paid following the third quarter Net Investment Income (NII) of $0.32 per share on a GAAP basis for the quarter ended September 30, 2025. To support shareholder value, BlackRock TCP Capital Corp. repurchased 169,964 shares from October 1, 2025, through November 5, 2025, at a weighted average price of $5.80.

Transparent financial reporting is managed through regular disclosures. BlackRock TCP Capital Corp. announced its third quarter 2025 financial results on November 6, 2025, and filed its Form 10-Q with the U.S. Securities and Exchange Commission (SEC) the same day. Key figures reported for the quarter ended September 30, 2025, include:

• Net Investment Income (GAAP basis): $27.3 million
• Net Asset Value per Share: $8.71
• Net realized loss for the quarter: $1.14 per share

The lender of influence approach in complex transactions is supported by the structure of the assets held. The portfolio is heavily weighted toward senior secured debt, with 89.7% in senior secured debt as of September 30, 2025. Furthermore, 83.0% of the total portfolio was first lien debt. The strategy emphasizes investments where the team can identify value in unique and complex transactions, leveraging BlackRock's private credit experience.

• Debt investments with floating interest rates: 94.2% of the debt portfolio at fair value as of September 30, 2025.
• Debt investments with interest rate floors: 95.2% of the floating rate debt investments.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Channels

You're looking at how BlackRock TCP Capital Corp. connects its investment opportunities and its stock to the market and regulators as of late 2025. It's all about getting capital in and reporting the results out.

Public equity market (NASDAQ) for common stock investors

BlackRock TCP Capital Corp. stock trades on the NASDAQ-GS exchange under the ticker symbol TCPC. The channel for equity investors is direct through this exchange, supplemented by investor relations materials.

Here are some key figures related to the public market channel as of late 2025:

The stock price on December 3, 2025, closed at $6.14, with a daily trading range between a low of $6.00 and a high of $6.18 on that day.

Direct origination channels for new loan investments

The primary channel for sourcing new debt investments is the direct origination capability built upon the Advisor's established track record. This is how BlackRock TCP Capital Corp. finds the middle-market companies it lends to.

The Advisor's history in this channel includes origination and participation in the original syndication of approximately $44.1 billion of leveraged loans to 733 companies since 1999, through December 31, 2024.

Activity in 2025 shows the deployment of capital through this channel:

• Total investment acquisitions for the three months ended March 31, 2025, were approximately $66.0 million.
• Total investment acquisitions for the three months ended June 30, 2025, were approximately $111.5 million.
• New investments during the quarter ended September 30, 2025, had a weighted average effective yield of 10.1%.

The portfolio composition reflects the output of these origination channels as of March 31, 2025:

Investor Relations website and conference calls

The Investor Relations website at www.tcpcapital.com and the specific section at http://investors.tcpcapital.com serve as the central digital hub for communication. This channel delivers regulatory documents and forward-looking updates.

Key events utilizing this channel in late 2025 include:

• Conference call to discuss Third Quarter Ended September 30, 2025, Financial Results scheduled for November 6, 2025, at 12:00 p.m. Eastern Time.
• The archived replay of the November 6, 2025 call was available through November 13, 2025.
• The Q3 2025 Investor presentation was made available on the site.

Investment banking and syndication partners for debt capital

While BlackRock TCP Capital Corp. focuses on direct origination, the Advisor's experience includes participation in the original syndication of leveraged loans, indicating the use of investment banking and syndication partners for deal flow and distribution. The portfolio composition shows the result of this capital structure focus.

As of March 31, 2025, the weighted-average interest rate on debt outstanding was 5.17%.

The company's available liquidity as of March 31, 2025, was approximately $628.9 million, comprised of approximately $530.0 million in available capacity under its leverage program and $99.1 million in cash and cash equivalents.

SEC filings (10-Q, 10-K) for regulatory disclosure

Regulatory disclosure is channeled directly through the U.S. Securities and Exchange Commission (SEC) website (www.sec.gov) and BlackRock TCP Capital Corp.'s Investor Relations website. These filings are mandatory for a publicly traded Business Development Company (BDC).

Specific 2025 filings mentioned include:

• Form 10-Q for the first quarter ended March 31, 2025, reported Net Investment Income of $32.2 million ($0.38 per share GAAP).
• Form 10-Q for the second quarter ended June 30, 2025, reported Net Investment Income of $27.6 million ($0.32 per share GAAP).
• Form 10-Q for the third quarter ended September 30, 2025, reported Net Investment Income of $27.3 million ($0.32 per share GAAP).

Recent SEC filing dates noted include November 17, 2025, November 6, 2025, and August 7, 2025.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Customer Segments

You're looking at the key groups BlackRock TCP Capital Corp. serves, which is crucial for understanding where their income comes from and who is investing in their stock. Here are the hard numbers defining those segments as of late 2025.

Public shareholders seeking high-yield dividends from a BDC

• Shares Outstanding as of December 5, 2025: 84.84 million.
• Stock Price at close on December 5, 2025: $6.10.
• Net Asset Value (NAV) per share as of June 30, 2025: $8.71.
• Regular Quarterly Dividend declared for Q2 2025: $0.25 per share.
• Special Dividend declared for Q2 2025: $0.04 per share.
• Price to NAV multiple as of May 8, 2025: 0.77x (based on $7.10 price and $9.18 NAV from Q1 2025).

The ownership split shows a strong retail base, which is typical for a publicly traded BDC focused on yield.

Established, resilient US middle-market companies needing credit

This is the core lending focus for BlackRock TCP Capital Corp., targeting companies with established positions and sustainable advantages.

• Total Portfolio Fair Value as of September 30, 2025: Approximately $1.7 billion.
• Total Portfolio Companies as of September 30, 2025: 149.
• Percentage of portfolio in Senior Secured Debt as of September 30, 2025: Approximately 90%.
• Percentage of debt portfolio at fair value with floating interest rates (Sept 30, 2025): Approximately 94.2%.
• The US core middle market represents approximately ~200,000 businesses.

Small businesses seeking growth capital

BlackRock TCP Capital Corp. explicitly targets small businesses alongside middle-market firms, often through senior secured lending.

• Average Investment Size in Q2 2025: $11.7 million.
• Average position size for new investments in 2025 year-to-date: Around $7.4 million.
• Percentage of portfolio companies contributing less than 1% of total income (as of Q2 2025): More than 74%.

Private equity sponsors requiring debt financing for buyouts

The connection here is through the management team's extensive network and dedicated capital resources.

• Number of dedicated Capital Markets and Private Equity Partners teams supporting origination: 120+.
• Repeat borrowers accounted for 51% of investment dollars year-to-date as of Q2 2025.

Institutional investors looking for private credit exposure

These investors are served both through the publicly traded BDC and the broader BlackRock platform managed by the same advisor.

• Assets managed by BlackRock's private credit platform as of December 31, 2025: Approximately $63 billion.
• The advisor has invested over $44 billion across more than 730 companies since inception through December 31, 2024.

Finance: draft 13-week cash view by Friday.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Cost Structure

You're looking at the direct costs BlackRock TCP Capital Corp. incurs to run its investment operations, which directly impacts the net investment income available for shareholders. These costs are primarily driven by the management agreement with the advisor and the cost of capital used to generate returns.

The structure of these expenses shows a significant portion tied to debt financing, which is typical for a business development company (BDC) using leverage. Furthermore, the advisor fee structure includes waivers, which directly reduce the expense burden for a period.

Here's a quick look at the major components for the second and third quarters of 2025, showing how the cost base shifted slightly:

The management fee structure is designed to align interests. For instance, in Q2 2025, the advisor waived a portion of the base management fee, which was $1.8 million for that quarter. This practice continued into Q3 2025, where the advisor waived 1/3 of the base management fee for the first three quarters of 2025, with the Q3 waiver also amounting to $1.8 million or $0.02 per share.

You should also track the costs related to credit quality issues, even when they aren't direct write-offs. The level of debt investments on non-accrual status serves as a proxy for potential future costs or write-downs. As of September 30, 2025, this metric stood at 3.5% of the portfolio fair value.

The overall expense profile, excluding debt costs, shows consistency:

• Annualized second quarter expenses (excluding interest/debt): 3.5% of average net assets.
• Annualized third quarter expenses (excluding interest/debt): 3.4% of average net assets.

Regarding performance-based compensation, you noted the hurdle rate:

• Incentive fees were not accrued in Q3 2025 because the Company's cumulative total return did not exceed the total return hurdle as of September 30, 2025.

For the third quarter of 2025, total operating expenses were reported as $0.27 per share, which is a useful metric for ongoing expense control analysis.

Finance: draft 13-week cash view by Friday.

BlackRock TCP Capital Corp. (TCPC) - Canvas Business Model: Revenue Streams

BlackRock TCP Capital Corp. generates its revenue primarily through its middle-market lending activities, focusing on current income generation from its debt investments. The firm's total investment income for the third quarter ended September 30, 2025, was reported at approximately $50.52 million.

The core of the revenue structure is built upon the income derived from its investment portfolio, which as of September 30, 2025, was valued at approximately $1.7 billion across 149 companies, with 89.7% invested in senior secured debt. The weighted average annual effective yield on the total portfolio for Q3 2025 was 11.5%.

The components of the gross investment income per share for Q3 2025 illustrate the mix of cash and non-cash accruals:

The breakdown of these streams shows the following specific figures:

• Recurring cash interest income from debt investments was $0.46 per share.
• Payment-in-Kind (PIK) interest income represented 9.5% of total investment income for the quarter, amounting to $0.06 per share.
• Fee income components included recurring discount and fee amortization of $0.02 per share, plus non-recurring income of $0.03 per share.
• Dividend income from equity investments was $0.02 per share.

The resulting profitability metric, Net Investment Income, which is the primary measure of recurring operational earnings before capital gains/losses, was $27.3 million for Q3 2025.

This Net Investment Income of $27.3 million translated to $0.32 per share on a diluted basis for the quarter ended September 30, 2025.