blackrock tcp net investment income trend
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BlackRock TCP Capital (TCPC) – Net Investment Income Trend
TCPC is a business development company (BDC), so its "net investment income" (NII) is the gap between investment income (interest from loan portfolio) and interest expense (debt funding costs). The lines below reconstruct NII from the raw income statement as Interest Income − Interest Expense, then roll it up to a trailing-twelve-month basis.
TTM Net Investment Income ($ millions, rolling 4 quarters)
| Period | Interest Income | Interest Expense | NII (TTM) |
|---|---|---|---|
| Jun 22 | 39.1 | 9.4 | 117.4 |
| Sep 22 | 44.0 | 10.2 | 122.4 |
| Dec 22 | 42.4 | 9.5 | 127.6 |
| Mar 23 | 47.4 | 10.6 | 133.2 |
| Jun 23 | 49.1 | 12.3 | 140.3 |
| Sep 23 | 49.7 | 12.1 | 144.1 |
| Dec 23 | 48.4 | 10.8 | 148.8 |
| Mar 24 | 52.2 | 12.2 | 152.1 |
| Jun 24 | 69.0 | 19.7 | 164.6 |
| Sep 24 | 65.0 | 21.2 | 170.8 |
| Dec 24 | 67.9 | 16.3 | 184.8 |
| Mar 25 | 52.6 | 15.3 | 182.0 |
| Jun 25 | 50.1 | 17.1 | 165.7 |
| Sep 25 | 48.9 | 16.8 | 153.9 |
| Dec 25 | 42.5 | 15.1 | 129.7 |
| Mar 26 | 41.2 | 16.0 | 117.6 |
Key observations
- 2022–2024 expansion (~$117M → $185M TTM): NII climbed roughly 60% over two years as floating-rate assets re-priced higher with Fed hikes; the spread between investment income and debt cost widened materially through 2024.
- Peak in Q4 2024 ($184.8M): Investment income ran at a record $67.9M that quarter while interest expense began to ease as TCPC refinanced some of its higher-cost notes.
- 2025 compression (–30%): As base rates began easing and the loan portfolio experienced paydowns/payment-in-kind reversals, quarterly investment income drifted from ~$68M back to ~$42M, and TTM NII fell to $129.7M by Dec 25.
- Q1 2026 ($117.6M TTM): TTM NII is now below the 2022 starting point, reflecting both lower reinvestment yields and ongoing shareholder distributions in excess of NII (the cumulative gap explains the GAAP net losses in 2024–2025).
The chart panel above plots the TTM NII series through 1Q26.
Note: Net investment income for a BDC is derived as Investment Income − Interest Expense; the loader's standalone net_interest_income line is not the GAAP NII line used in BDC reporting. Values are reconstructed directly from the reported income statement components.
about 2 months ago