BlackRock TCP Capital Corp
For the period ended Sep 30, 2024. Filed Nov 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 6, 2024
TCPC$4.30+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092283
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0000950170-24-121829
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 92 previous paragraphs and 169 current paragraphs.
83 unchanged; 6 reworded; 79 added; 3 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 1 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (79)
Current report
During the three months ended September 30, 2024, we invested approximately $72.8 million, comprised of new investments in 6 new and 3 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $62.7 million, or 86.2% of total acquisitions, were in senior secured loans, and $7.6 million, or 10.4% of total acquisitions, were in senior secured notes. The remaining $2.5 million, or 3.4% of total acquisitions, was comprised of equity investments. Additionally, we received approximately $139.2 million in proceeds from sales or repayments of investments during the three months ended September 30, 2024.
Current report
During the three months ended September 30, 2023, we invested approximately $92.4 million, comprised of new investments in 4 new and 4 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $91.5 million, or 99.0% of total acquisitions, were in senior secured loans. The remaining $0.9 million (1.0% of total acquisitions) was comprised of equity investments. Additionally, we received approximately $125.6 million in proceeds from sales or repayments of investments during the three months ended September 30, 2023.
Current report
During the nine months ended September 30, 2023, we invested approximately $185.5 million, comprised of new investments in 14 new and 8 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $182.5 million, or 98.4% of total acquisitions, were in senior secured loans. The remaining $3.0 million (1.6% of total acquisitions) was comprised of equity investments. Additionally, we received approximately $176.5 million in proceeds from sales or repayments of investments during the nine months ended September 30, 2023.
Current report
Results of operations
Current report
Investment income
Current report
Investment income totaled $70.9 million and $54.2 million, respectively, for the three months ended September 30, 2024 and 2023, of which $69.2 million and $53.3 million were attributable to interest and fees on our debt investments, $1.6 million and $0.9 million to dividend income and $0.1 million and $0.0 million to other income, respectively. Included in interest and fees on our debt investments were $6.7 million and $0.7 million of non-recurring income related to prepayments and $0.5 million and $0.4 million in amendment fees for the three months ended September 30, 2024 and 2023, respectively. The increase in investment income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily reflects an increase in interest income due to additional investment income earned on investments acquired as a result of the Merger and higher SOFR rates during the three months ended September 30, 2024.
Current report
Investment income totaled $198.2 million and $158.5 million, respectively, for the nine months ended September 30, 2024 and 2023, of which $193.0 million and $155.3 million were attributable to interest and fees on our debt investments, $5.1 million and $2.8 million to dividend income and $0.1 million and $0.4 million to other income, respectively. Included in interest and fees on our debt investments were $13.1 million and $1.0 million of non-recurring income related to prepayments and $0.9 million and $0.9 million in amendment fees for the nine months ended September 30, 2024 and 2023, respectively. The increase in investment income for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily reflects an increase in interest income due to additional investment income earned on investments acquired as a result of the Merger and higher SOFR rates during the nine months ended September 30, 2024.
Current report
Expenses
Current report
Total operating expenses for the three months ended September 30, 2024 and 2023 were $37.1 million and $25.9 million, respectively, comprised of $21.2 million and $12.1 million in interest expense and related fees, $6.5 million and $6.0 million in incentive fee expense, $6.2 million and $6.1 million in base management fees, $0.8 million and $0.7 million in professional fees, $0.5 million and $0.4 million in administrative expenses and $1.9 million and $0.6 million in other expenses, respectively. The increase in operating expenses for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily reflects an increase in interest expense as a result of the higher debt outstanding assumed as a result of the Merger and the issuance of the 2029 Notes and due to higher SOFR rates during the three months ended September 30, 2024, in addition to an increase in incentive fee expense from higher pre-incentive net investment income earned during the three months ended September 30, 2024.
Current report
Total operating expenses for the nine months ended September 30, 2024 and 2023 were $100.2 million and $77.1 million, respectively, comprised of $54.1 million and $36.0 million in interest expense and related fees, $19.2 million and $17.3 million in incentive fee expense, $18.6 million and $18.1 million in base management fees, $2.4 million and $1.5 million in professional fees, $1.7 million and $1.1 million in administrative expenses and $4.2 million and $3.1 million in other expenses, respectively. The increase in operating expenses for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily reflects an increase in interest expense as a result of the higher debt outstanding assumed as a result of the Merger and the issuance of the 2029 Notes and due to higher SOFR rates during the nine months ended September 30, 2024, in addition to an increase in incentive fee expense from higher pre-incentive net investment income earned during the nine months ended September 30, 2024.
Current report
Net investment income
Current report
Net investment income was $33.9 million and $28.3 million, respectively, for the three months ended September 30, 2024 and 2023. The increase in net investment income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily reflects the increase in total investment income, partially offset by the increase in expenses during the three months ended September 30, 2024.
Current report
Net investment income was $98.0 million and $81.3 million, respectively, for the nine months ended September 30, 2024 and 2023. The increase in net investment income for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily reflects the increase in total investment income, partially offset by the increase in expenses during the nine months ended September 30, 2024.
Current report
Net realized and unrealized gain or loss
Current report
Net realized gain (loss) for the three months ended September 30, 2024 and 2023 was $(31.4) million and $(0.1) million, respectively. Net realized losses for the three months ended September 30, 2024 was comprised primarily of $24.1 million and $7.4 million in losses from the restructuring of our investments in Pluralsight and McAfee, respectively. Subsequent to its restructuring, our debt investment in Pluralsight is back on accrual status.
Current report
Net realized gain (loss) for the nine months ended September 30, 2024 and 2023 was $(67.1) million and $(31.2) million, respectively. Net realized losses for the nine months ended September 30, 2024 was comprised primarily of $24.1 million, $22.8 million, $12.6 million and $7.4 million in losses from the restructuring of our investments in Pluralsight, Thras.io, Hylan and McAfee, respectively. Net realized loss for the nine months ended September 30, 2023 was comprised primarily of a $30.7 million loss from reorganization of our investment in AutoAlert.
Current report
For the three months ended September 30, 2024 and 2023, the change in net unrealized appreciation (depreciation) was $19.2 million and $(15.4) million, respectively. The change in net unrealized appreciation for the three months ended September 30, 2024 primarily reflects $24.1 million and $7.6 million reversals of previous unrealized losses from the restructuring of our investments in Pluralsight and McAfee, respectively, a $4.2 million unrealized gain on our investment in Securus, a $3.6 million unrealized gain on our investment in Domo and other unrealized gains across the portfolio, partially offset by an $8.0 million unrealized loss on our investment in Gordon Brothers, a $4.0 million unrealized loss on our investment in Seller-X, a $3.3 million unrealized loss on our investment in InMoment, a $2.8 million unrealized loss on our investment in Edmentum and a $2.2 million unrealized loss on our investment in Alpine. The change in net unrealized depreciation for the three months ended September 30, 2023 primarily reflects a $4.5 million unrealized loss on our investment in Edmentum, a $4.0 million unrealized loss on our investment in Khoros, a $3.6 million unrealized loss on our investment in Magenta Buyer, a $2.5 million unrealized loss on our investment in 36th Street Capital, a $2.4 million unrealized loss on our investment in Hylan, and a $2.2 million unrealized loss on our investment in CIBT, offset by a $3.2 million unrealized gain on our investment in Astra Acquisition.
Current report
For the nine months ended September 30, 2024 and 2023, the change in net unrealized appreciation (depreciation) was $(55.4) million and $1.6 million, respectively. The change in unrealized depreciation of $(55.4) million is net of $21.3 million in unrealized appreciation resulting from a reduction of the cost basis of investments acquired as a result of the Merger from allocation of the purchase discount paid by the Company. The change in net unrealized depreciation for the nine months ended September 30, 2024 primarily reflects a $35.4 million unrealized loss on our investment in Seller-X, a $20.2 million unrealized loss on our investment in Edmentum, a $14.7 million unrealized loss on our investment in Lithium, a $13.3 million unrealized loss on our investment in Razor, and a $7.2 million unrealized loss on our investment in Gordon Brothers, partially offset by $17.0 million, $10.7 million, $6.3 million, and $5.2 million reversals of previous unrealized losses from the restructuring of our investments in Thras.io, Hylan, Perch and McAfee, respectively. The change in net unrealized appreciation for the nine months ended September 30, 2023 primarily reflects a $37.0 million reversal of previously recognized unrealized losses from the reorganization of our investment in Autoalert, offset by a $8.0 million unrealized loss in Hylan, a $6.8 million unrealized loss on our investment in Magenta Buyer, a $5.3 million unrealized loss on our investment in 36th Street, a $5.1 million unrealized loss on our investment in Khoros, a $4.4 million unrealized loss on our investment in Edmentum, a $3.9 million unrealized loss on our investment in Astra Acquisition, and a $3.9 million unrealized loss on our investment in Perch.
Current report
Incentive compensation
Current report
Incentive fees, included in operating expenses for the three months ended September 30, 2024 and 2023 were $6.5 million and $6.0 million, and for the nine months ended September 30, 2024 and 2023 were $19.2 million and $17.3 million, respectively, and were each payable due to our performance exceeding the cumulative total return threshold during those periods. The increase in incentive fee expense for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively, was the result of higher pre-incentive fee net investment income earned during the three and nine months ended September 30, 2024 which was driven by higher SOFR rates and additional investment income earned on investments acquired as a result of the Merger.
Current report
Income tax expense, including excise tax
Current report
The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must, among other things, timely distribute to its shareholders generally at least 90% of its investment company taxable income, as defined by the Code, for each year. The Company has made and intends to continue to make the requisite distributions to its shareholders which will generally relieve the Company from U.S. federal income taxes.
Current report
Depending on the level of taxable income earned in a tax year, we may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income. Any excise tax expense is recorded at year end as such amounts are known. No excise tax was incurred for the nine months ended September 30, 2024.
Current report
Net increase (decrease) in net assets resulting from operations
Current report
The net increase (decrease) in net assets applicable to common shareholders resulting from operations was $21.6 million and $12.8 million for the three months ended September 30, 2024 and 2023, respectively. The increase in net assets resulting from operations during the three months ended September 30, 2024 was primarily due to higher net investment income and lower net realized and unrealized losses compared to the three months ended September 30, 2023.
Current report
The net increase (decrease) in net assets applicable to common shareholders resulting from operations was $(24.6) million and $51.8 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease in net assets resulting from operations during the nine months ended September 30, 2024 was primarily due to higher net realized and unrealized losses, partially offset by higher net investment income compared to the nine months ended September 30, 2023.
Current report
Net investment income, net realized and unrealized gain (loss) and net increase (decrease) in net assets resulting from operations can vary from period to period as a result of various factors, including acquisitions, the level of new investment commitments, the recognition of realized gains and losses and changes in unrealized appreciation and depreciation on the investment portfolio.
Current report
Supplemental Non-GAAP information
Current report
On March 18, 2024, the Company completed its previously announced Merger with BCIC. The Merger has been accounted for as an asset acquisition of BCIC by the Company in accordance with the asset acquisition method of accounting as detailed in ASC 805-50 ("ASC 805"), Business Combinations-Related Issues. The Company determined the fair value of the shares of the Company's common stock that were issued to former BCIC shareholders pursuant to the Merger Agreement plus transaction costs to be the consideration paid in connection with the Merger under ASC 805. The consideration paid to BCIC shareholders was less than the aggregate fair values of the BCIC assets acquired and liabilities assumed, which resulted in a purchase discount (the “purchase discount”). The consideration paid was allocated to the individual BCIC assets acquired and liabilities assumed based on the relative fair values of net identifiable assets acquired other than “non-qualifying” assets and liabilities (for example, cash) and did not give rise to goodwill. As a result, the purchase discount was allocated to the cost basis of the BCIC investments acquired by the Company on a pro-rata basis based on their relative fair values as of the effective time of the Merger. Immediately following the Merger, the investments were marked to their respective fair values in accordance with ASC 820 which resulted in immediate recognition of net unrealized appreciation in the Consolidated Statement of Operations as a result of the Merger. The purchase discount allocated to the BCIC debt investments acquired will amortize over the remaining life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized appreciation or depreciation on such investment acquired through its ultimate disposition. The purchase discount allocated to BCIC equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company may recognize a realized gain with a corresponding reversal of the unrealized appreciation on disposition of such equity investments acquired.
Current report
As a supplement to the Company’s reported GAAP financial measures, we have provided the following non-GAAP financial measures that we believe are useful:
Current report
“Adjusted net investment income” – excludes the amortization of purchase accounting discount from net investment income calculated in accordance with GAAP;
Current report
“Adjusted net realized and unrealized gain (loss)” – excludes the unrealized appreciation resulting from the purchase discount and the corresponding reversal of the unrealized appreciation from the amortization of the purchase discount from the determination of net realized and unrealized gain (loss) determined in accordance with GAAP; and
Current report
“Adjusted net increase (decrease) in net assets resulting from operations” – calculates net increase (decrease) in net assets resulting from operations based on Adjusted net investment income and Adjusted net realized and unrealized gain (loss).
Current report
We believe that the adjustment to exclude the full effect of purchase discount accounting under ASC 805 from these financial measures is meaningful because of the potential impact on the comparability of these financial measures that we and investors use to assess our financial condition and results of operations period over period. Although these non-GAAP financial measures are intended to enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The aforementioned non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.
Current report
Liquidity and capital resources
Current report
Since our inception, our liquidity and capital resources have been generated primarily through the initial private placement of common shares of Special Value Continuation Fund, LLC (the predecessor entity) which were subsequently converted to common stock of the Company, the net proceeds from the initial and secondary public offerings of our common stock, amounts outstanding under our Leverage Program, and cash flows from operations, including investments sales and repayments and income earned from investments and cash equivalents. The primary uses of cash have been investments in portfolio companies, cash distributions to our equity holders, payments to service our Leverage Program and other general corporate purposes.
Current report
On February 27, 2024, the Board of Directors approved a new dividend reinvestment plan (the “DRIP”) for the Company. The DRIP was effective as of, and will apply to the reinvestment of cash distributions with a record date after March 18, 2024. Under the DRIP, shareholders will automatically receive cash dividends and distributions unless they “opt in” to the DRIP and elect to have their dividends and distributions reinvested in additional shares of the Company’s common stock. Notwithstanding the foregoing, the former shareholders of BCIC that participated in the BCIC dividend reinvestment plan at the time of the Merger have been automatically enrolled in the Company’s DRIP and will have their shares reinvested in additional shares of the Company’s common stock on future distributions, unless they “opt out” of the DRIP. For the nine months ended September 30, 2024, approximately $1.5 million of cash distributions were reinvested for electing Participants through purchase of shares in the open market in accordance with the terms of the DRIP.
Current report
On February 24, 2015, the Company’s Board of Directors approved a stock repurchase plan (the “Company Repurchase Plan”) to acquire up to $50.0 million in the aggregate of the Company’s common stock at prices at certain thresholds below the Company’s net asset value per share, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the 1934 Act. The Company Repurchase Plan is designed to allow the Company to repurchase its common stock at times when it otherwise might be prevented from doing so under insider trading laws. The Company Repurchase Plan requires an agent selected by the Company to repurchase shares of common stock on the Company’s behalf if and when the market price per share is at certain thresholds below the most recently reported net asset value per share. Under the plan, the agent will increase the volume of purchases made if the price of the Company’s common stock declines, subject to volume restrictions. The timing and amount of any stock repurchased depends on the terms and conditions of the Company Repurchase Plan, the market price of the common stock and trading volumes, and no assurance can be given that any particular amount of common stock will be repurchased. The Company Repurchase Plan was re-approved on August 1, 2024, to be in effect through the earlier of April 30, 2025, unless further extended or terminated by our Board of Directors, or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions. No shares were repurchased by the Company under the Company Repurchase plan for the nine months ended September 30, 2024 and 2023.
Current report
Total leverage outstanding and available under the combined Leverage Program at September 30, 2024 were as follows:
Current report
Except for the 2026 Notes and 2029 Notes, all carrying values are the same as the principal amounts outstanding.
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Removed paragraphs (3)
Previous report
During the three months ended June 30, 2024, we invested approximately $129.7 million, comprised of new investments in 5 new and 5 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $123.5 million, or 95.3% of total acquisitions, were in senior secured loans. The remaining $6.2 million, or 4.7% of total acquisitions, was comprised of equity investments. Additionally, we received approximately $185.0 million in proceeds from sales or repayments of investments during the three months ended June 30, 2024.
Previous report
During the three months ended June 30, 2023, we invested approximately $17.1 million, comprised of new investments in 2 new and 2 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $15.9 million, or 93.2% of total acquisitions, were in senior secured loans. The remaining $1.2 million (6.8% of total acquisitions) was comprised of equity investments. Additionally, we received approximately $31.6 million in proceeds from sales or repayments of investments during the three months ended June 30, 2023.
Previous report
During the six months ended June 30, 2023, we invested approximately $93.1 million, comprised of new investments in 10 new and 4 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $91.0 million, or 97.8% of total acquisitions, were in senior secured loans. The remaining $2.1 million (2.2% of total acquisitions) was comprised of equity investments. Additionally, we received approximately $50.9 million in proceeds from sales or repayments of investments during the six months ended June 30, 2023.
Reworded paragraphs (6)
Previous wording
Our leverage program is comprised of $300.0 million in available debt under a revolving, multi-currency credit facility issued by SVCP (the “Operating Facility”), $200.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding II (“Funding Facility II”), amounts outstanding under a senior secured revolving credit facility originally issued by BCIC and assumed by Merger Sub ("Merger Sub Facility"), $250.0 million in senior unsecured notes issued by the Company maturing in 2024 (the “2024 Notes”), unsecured notes due December 2025 originally issued by BCIC and assumed by Merger Sub (the "2025 Notes"), $325.0 million in senior unsecured notes issued by the Company maturing in 2026 (the “2026 Notes”), $325.0 million in senior unsecured notes issued by the Company maturing in 2029 (the “2029 Notes”) and $160.0 million in committed leverage from the SBA (the “SBA Program” and, together with the Operating Facility, Funding Facility II, Merger Sub Facility, the 2024 Notes, the 2025 Notes, the 2026 Notes and the 2029 Notes, the “Leverage Program”). Prior to being repaid on March 1, 2022, debt included $140.0 million in Convertible unsecured notes due March 2022 issued by the Company (the "2022 Convertible Notes").
Current wording
Our leverage program is comprised of $300.0 million in available debt under a revolving, multi-currency credit facility issued by SVCP (the “Operating Facility”), $200.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding II (“Funding Facility II”), amounts outstanding under a senior secured revolving credit facility originally issued by BCIC and assumed by Merger Sub ("Merger Sub Facility"), unsecured notes due December 2025 originally issued by BCIC and assumed by Merger Sub (the "2025 Notes"), $325.0 million in senior unsecured notes issued by the Company maturing in 2026 (the “2026 Notes”), $325.0 million in senior unsecured notes issued by the Company maturing in 2029 (the “2029 Notes”) and $141.5 million in committed leverage from the SBA (the “SBA Program” and, together with the Operating Facility, Funding Facility II, Merger Sub Facility, the 2025 Notes, the 2026 Notes and the 2029 Notes, the “Leverage Program”). Prior to being repaid on March 1, 2022, debt included $140.0 million in Convertible unsecured notes due March 2022 issued by the Company (the "2022 Convertible Notes"). Prior to being repaid on August 23, 2024, debt included $250.0 million in unsecured notes due August 2024 issued by the Company (the "2024 Notes").
Previous wording
As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities and indebtedness of private U.S. companies, public U.S. operating companies whose securities are not listed on a national securities exchange or registered under the Securities Exchange Act of 1934, as amended, public domestic operating companies having a market capitalization of less than $250.0 million, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. We are also permitted to make certain follow-on investments in companies that were eligible portfolio companies at the time of initial investment but that no longer meet the definition. As of June 30, 2024, 84.4% of our total assets were invested in qualifying assets.
Current wording
As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities and indebtedness of private U.S. companies, public U.S. operating companies whose securities are not listed on a national securities exchange or registered under the Securities Exchange Act of 1934, as amended, public domestic operating companies having a market capitalization of less than $250.0 million, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. We are also permitted to make certain follow-on investments in companies that were eligible portfolio companies at the time of initial investment but that no longer meet the definition. As of September 30, 2024, 83.1% of our total assets were invested in qualifying assets.
Previous wording
As of June 30, 2024, 0.0% of our investments were categorized as Level 1, 1.3% were categorized as Level 2, 98.6% were categorized as Level 3 investments valued based on valuations by independent third-party sources, and 0.1% were categorized as Level 3 investments valued based on valuations by the Valuation Designee.
Current wording
As of September 30, 2024, 0.0% of our investments were categorized as Level 1, 1.5% were categorized as Level 2, 98.4% were categorized as Level 3 investments valued based on valuations by independent third-party sources, and 0.1% were categorized as Level 3 investments valued based on valuations by the Valuation Designee.
Previous wording
During the six months ended June 30, 2024, we invested approximately $736.7 million, of which $587.0 million of investments were acquired as a result of the Merger, which were comprised of 95.8% in senior secured loans, 3.1% in unsecured or subordinated debt securities and 1.1% in equity investments. The remaining $149.7 million of investments made by the Company during the six months ended June 30, 2024, included new investments in 8 new and 9 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $142.5 million, or 95.2% of total acquisitions, were in senior secured loans. The remaining $7.3 million or 4.8% of total acquisitions, was comprised of equity investments. Additionally, we received approximately $209.3 million in proceeds from sales or repayments of investments during the six months ended June 30, 2024.
Current wording
During the nine months ended September 30, 2024, we invested approximately $809.5 million, of which $587.0 million of investments were acquired as a result of the Merger which were comprised of 95.8% in senior secured loans, 3.1% in unsecured or subordinated debt securities and 1.1% in equity investments. The remaining $222.5 million of investments made by the Company during the nine months ended September 30, 2024, included new investments in 15 new and 11 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $205.2 million, or 92.2% of total acquisitions, were in senior secured loans, and $7.6 million, or 3.4% of total acquisitions, were in senior secured notes. The remaining $9.7 million or 4.4% of total acquisitions, was comprised of equity investments. Additionally, we received approximately $348.5 million in proceeds from sales or repayments of investments during the nine months ended September 30, 2024.
Previous wording
At June 30, 2024, our consolidated investment portfolio of $1,980.9 million (at fair value) consisted of 158 portfolio companies and was invested 91.8% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 88.5% in senior secured loans, 2.6% in senior secured notes, 0.7% in unsecured debt and 8.2% in equity investments. Our average portfolio company investment at fair value was approximately $12.5 million. Our largest portfolio company investment based on fair value was approximately 5.2% of our portfolio and our five largest portfolio company investments based on fair value comprised approximately 17.6% of our portfolio at June 30, 2024.
Current wording
At September 30, 2024, our consolidated investment portfolio of $1,909.1 million (at fair value) consisted of 156 portfolio companies and was invested 90.9% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 87.4% in senior secured loans, 3.1% in senior secured notes, 0.4% in unsecured debt and 9.1% in equity investments. Our average portfolio company investment at fair value was approximately $12.2 million. Our largest portfolio company investment based on fair value was approximately 5.9% of our portfolio and our five largest portfolio company investments based on fair value comprised approximately 19.0% of our portfolio at September 30, 2024.
Previous wording
The weighted average effective yield of our debt portfolio based on fair value was 13.7% at June 30, 2024 and 14.1% at December 31, 2023, excluding non-accrual and non-income producing loans. The weighted average effective yield of our total portfolio based on fair value was 12.4% at June 30, 2024 and 13.3% at December 31, 2023. At June 30, 2024, 93.4% of debt investments in our portfolio bore interest based on floating rates, such as SOFR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 6.6% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 97.1% at June 30, 2024. Debt investments in ten portfolio companies were on non-accrual status as of June 30, 2024, representing 4.9% of the portfolio at fair value and 10.5% at cost. At December 31, 2023, 95.6% of debt investments in our portfolio bore interest based on floating rates, such as SOFR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 4.4% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 94.0% at December 31, 2023. Debt investments in four portfolio companies were on non-accrual status as of December 31, 2023, representing 2.0% of the portfolio at fair value and 3.7% at cost.
Current wording
The weighted average effective yield of our debt portfolio based on fair value was 13.4% at September 30, 2024 and 14.1% at December 31, 2023, excluding non-accrual and non-income producing loans. The weighted average effective yield of our total portfolio based on fair value was 11.9% at September 30, 2024 and 13.3% at December 31, 2023. At September 30, 2024, 92.7% of debt investments in our portfolio bore interest based on floating rates, such as SOFR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 7.3% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 97.0% at September 30, 2024. Debt and preferred equity investments in ten portfolio companies were on non-accrual status as of September 30, 2024, representing 3.8% of the portfolio at fair value and 9.3% at cost. At December 31, 2023, 95.6% of debt investments in our portfolio bore interest based on floating rates, such as SOFR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 4.4% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 94.0% at December 31, 2023. Debt investments in four portfolio companies were on non-accrual status as of December 31, 2023, representing 2.0% of the portfolio at fair value and 3.7% at cost.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On March 18, 2024, the Company completed its previously announced Merger with BCIC. Pursuant to the Merger Agreement, BCIC was merged with and into Merger Sub, with Merger Sub continuing as the surviving company and as a subsidiary of SVCP. The Merger was considered a tax-free reorganization and the Company has elected to carry forward the historical cost basis of the acquired BCIC investments for tax purposes. As a result of the Merger, BCIC’s separate existence ceased.