BlackRock TCP Capital Corp.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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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.
Jun 30, 2025 · Filed Aug 7, 2025
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 2025-03-31; filed 2025-05-08.
0000950170-25-066415
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000950170-25-104590
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 164 previous paragraphs and 183 current paragraphs.
133 unchanged; 24 reworded; 22 added; 5 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 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 (22)
Current report
Item 2. Management’s Discussion and Analysisof Financial Condition and Results of Operations
Current report
During the three months ended June 30, 2025, we invested approximately $111.5 million, comprised of new investments in 11 new and 2 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $102.2 million, or 91.6% of total acquisitions, were in senior secured loans. The remaining $9.3 million, or 8.4% of total acquisitions, was comprised of equity investments. Additionally, we received approximately $47.9 million in proceeds from sales or repayments of investments during the three months ended June 30, 2025.
Current 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.
Current report
During the six months ended June 30, 2025, we invested approximately $177.5 million, comprised of new investments in 13 new and 11 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $162.6 million, or 91.6% of total acquisitions, were in senior secured loans. The remaining $14.9 million or 8.4% of total acquisitions, was comprised of equity investments. Additionally, we received approximately $132.6 million in proceeds from sales or repayments of investments during the six months ended June 30, 2025.
Current report
Net investment income was $59.8 million and $64.1 million, respectively, for the six months ended June 30, 2025 and 2024. The decrease in net investment income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily reflects the decrease in total investment income, partially offset by the decrease in expenses during the six months ended June 30, 2024.
Current report
Net realized gain (loss) for the six months ended June 30, 2025 and 2024 was $(107.2) million and $(35.7) million, respectively. Net realized loss for the six months ended June 30, 2025 was comprised primarily of a $24.5 million loss from the disposition of our investment in Securus and $23.8 million, $22.5 million, $11.5 million, and $10.7 million in losses from the restructuring of our investments in SellerX, Khoros, InMoment, and Renovo, respectively. Net realized loss for the six months ended June 30, 2024 was comprised primarily of $22.8 million and $12.8 million in losses from the restructuring of our investments in Thras.io and Hylan, respectively.
Current report
On July 1, 2025, BlackRock, Inc. completed its previously announced acquisition of 100% of the business and assets of HPS
Current report
Investment Partners (“HPS”), a leading global credit investment manager (the “Acquisition”). In connection with the Acquisition,
Current report
certain senior personnel of HPS joined the Adviser’s investment committee for the Company’s portfolio as voting members. As of July 1, 2025, the voting members of the Adviser’s investment committee for the Company are Philip Tseng, Jason Mehring, Dan Worrell, Rob DiPaolo, Vikas Keswani, Michael Fenstermacher, and Grishma Parekh.
Current report
On July 21, 2025, the Company caused notices to be issued to the holders of the 2025 Notes regarding the Company’s exercise
Current report
of its option to prepay $35,000,000 in aggregate principal amount of issued and outstanding 6.85% Series 2022A Senior Notes,
Current report
Tranche A, due December 9, 2025 (the “Tranche A Notes”) and $57,000,000 in aggregate principal amount of issued and outstanding
Current report
Floating Rate Series 2022A Senior Notes, Tranche B due December 9, 2025 (the “Tranche B Notes”), which represent the entire
Current report
amount of the 2025 Notes outstanding, pursuant to the terms of the Master Note Purchase Agreement, dated as of April 21, 2022,
Current report
among BCIC and certain institutional investors (as amended, supplemented or otherwise modified from time to time, the “Note
Current report
Purchase Agreement”). The Company prepaid all $35,000,000 in aggregate principal amount of the Tranche A Notes and $57,000,000
Current report
in aggregate principal amount of the Tranche B Notes on July 31, 2025, at 100% of their principal amount, plus the accrued and
Current report
unpaid interest thereon in accordance with the terms of the Note Purchase Agreement.
Current report
On July 31, 2025, TCPC Funding II entered into a Sixth Amendment to the Loan and Servicing Agreement (the “Sixth
Current report
Amendment”) among TCPC Funding II, as borrower, SVCP, as servicer, Morgan Stanley Asset Funding Inc., as administrative agent
Current report
and Morgan Stanley Bank, N.A. and City National Bank, as lenders. The Sixth Amendment amends Funding Facility II to extend the
Current report
revolving period from August 4, 2025, to July 31, 2027, and incorporates certain other changes set forth in the Sixth Amendment.
Removed paragraphs (5)
Previous report
During the three months ended March 31, 2025, we invested approximately $66.0 million, comprised of new investments in 2 new and 9 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $60.5 million, or 91.7% of total acquisitions, were in senior secured loans. The remaining $5.5 million, or 8.3% of total acquisitions, was comprised of equity investments. Additionally, we received approximately $84.9 million in proceeds from sales or repayments of investments during the three months ended March 31, 2025.
Previous report
No dividend reinvestment plan was effective for the three months ended March 31, 2024.
Previous report
From April 1, 2025 through May 7, 2025, the Company has invested approximately $43.6 million primarily in two senior secured loans with a combined effective yield of approximately 10.0%.
Previous report
From April 1, 2025 through May 7, 2025, the Company repurchased 39,500 shares at a weighted average price of $6.70, for a total cost of $264,706.
Previous report
On May 2, 2025, SVCP entered into Amendment No. 8 and Limited Waiver to the Operating Facility (the “Operating Facility Amendment”). The Operating Facility Amendment (i) clarified that, for purposes of the Operating Facility, “control” does not include “negative” control or “blocking” rights, and (ii) provided that the administrative agent and the lenders under the Operating Facility waived any default or event of default under the Operating Facility resulting from the failure of SVCP to cause TCPC Holdings Blocker, LLC, a Delaware limited liability company, to become a “Subsidiary Guarantor” within the time required under the Operating Facility.
Reworded paragraphs (24)
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 March 31, 2025, 82.6% 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 June 30, 2025, 83.4% of our total assets were invested in qualifying assets.
Previous wording
In connection with the Merger, the Company and the Advisor entered into an amended and restated investment advisory agreement (the "Amended and Restated Investment Advisory Agreement"), pursuant to which the Advisor reduced its base management fee rate for managing the Company from 1.50% to 1.25% on assets equal to or below 200% of the net asset value of the Company with no change to the basis of calculation. Prior to the Closing, the Advisor’s base management fee rate for managing the Company was 1.50% on assets equal to or below 200% of the net asset value of the Company. The base management fee rate on assets that exceed 200% of the net asset value of the Company remains 1.00%. The Company also entered into a fee waiver agreement with the Advisor (the "Fee Waiver Agreement"). The Fee Waiver Agreement provided that the Advisor will waive all or a portion of its advisory fees to the extent the adjusted net investment income of the Company on a per share basis (determined by dividing the adjusted net investment income of the Company by the weighted average outstanding shares of the Company during the relevant quarter) is less than $0.32 per share in any of the first four (4) fiscal quarters ending after the Closing (the first of which will be the quarter in which the Closing occurred) to the extent there are sufficient advisory fees to cover such deficit (the waiver amount in a given quarter cannot exceed the total advisory fees for such quarter). On February 24, 2025, the Advisor voluntarily agreed to waive one third of its management fee for each of the first three quarters of 2025, starting on January 1, 2025 and ending on September 30, 2025. For the three months ended March 31, 2025, the Advisor waived $1.8 million in management fees.
Current wording
In connection with the Merger, the Company and the Advisor entered into an amended and restated investment advisory agreement (the "Amended and Restated Investment Advisory Agreement"), pursuant to which the Advisor reduced its base management fee rate for managing the Company from 1.50% to 1.25% on assets equal to or below 200% of the net asset value of the Company with no change to the basis of calculation. Prior to the Closing, the Advisor’s base management fee rate for managing the Company was 1.50% on assets equal to or below 200% of the net asset value of the Company. The base management fee rate on assets that exceed 200% of the net asset value of the Company remains 1.00%. The Company also entered into a fee waiver agreement with the Advisor (the "Fee Waiver Agreement"). The Fee Waiver Agreement provided that the Advisor will waive all or a portion of its advisory fees to the extent the adjusted net investment income of the Company on a per share basis (determined by dividing the adjusted net investment income of the Company by the weighted average outstanding shares of the Company during the relevant quarter) is less than $0.32 per share in any of the first four (4) fiscal quarters ending after the Closing (the first of which will be the quarter in which the Closing occurred) to the extent there are sufficient advisory fees to cover such deficit (the waiver amount in a given quarter cannot exceed the total advisory fees for such quarter). On February 24, 2025, the Advisor voluntarily agreed to waive one third of its management fee for each of the first three quarters of 2025, starting on January 1, 2025 and ending on September 30, 2025. For the six months ended June 30, 2025, the Advisor waived $3.6 million in management fees.
Previous wording
As of March 31, 2025, 0.0% of our investments were categorized as Level 1, 1.2% were categorized as Level 2, 98.7% 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 June 30, 2025, 0.0% of our investments were categorized as Level 1, 0.9% were categorized as Level 2, 99.0% 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 three months ended March 31, 2024, we invested approximately $607.0 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 $20.0 million of investments made by the Company during the three months ended March 31, 2024, included new investments in 4 new and 3 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $18.9 million, or 94.5% of total acquisitions, were in senior secured loans. The remaining $1.1 million (5.5% of total acquisitions) was comprised of equity investments. Additionally, we received approximately $24.3 million in proceeds from sales or repayments of investments during the three months ended March 31, 2024.
Current 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.
Previous wording
At March 31, 2025, our consolidated investment portfolio of $1,769.3 million (at fair value) consisted of 146 portfolio companies and was invested 90.1% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 86.6% in senior secured loans, 3.4% in senior secured notes, 0.1% in unsecured debt and 9.9% in equity investments. Our average portfolio company investment at fair value was approximately $12.1 million. Our largest portfolio company investment based on fair value was approximately 6.3% of our portfolio and our five largest portfolio company investments based on fair value comprised approximately 19.8% of our portfolio at March 31, 2025.
Current wording
At June 30, 2025, our consolidated investment portfolio of $1,792.3 million (at fair value) consisted of 153 portfolio companies and was invested 89.4% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 86.0% in senior secured loans, 3.3% in senior secured notes, 0.1% in unsecured debt and 10.6% in equity investments. Our average portfolio company investment at fair value was approximately $11.7 million. Our largest portfolio company investment based on fair value was approximately 6.2% of our portfolio and our five largest portfolio company investments based on fair value comprised approximately 19.6% of our portfolio at June 30, 2025.
Previous wording
The weighted average effective yield of our debt portfolio based on fair value was 12.2% at March 31, 2025 and 12.4% at December 31, 2024, excluding non-accrual and non-income producing loans. The weighted average effective yield of our total portfolio based on fair value was 10.8% at March 31, 2025 and 11.1% at December 31, 2024. At March 31, 2025, 94.0% 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 6.0% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 97.9% at March 31, 2025. Debt and preferred equity investments in eight portfolio companies were on non-accrual status as of March 31, 2025, representing 4.4% of the portfolio at fair value and 12.6% at cost. At December 31, 2024, 94.5% 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 5.5% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 97.5% at December 31, 2024. Debt and preferred equity investments in twelve portfolio companies were on non-accrual status as of December 31, 2024, representing 5.6% of the portfolio at fair value and 14.4% at cost.
Current wording
The weighted average effective yield of our debt portfolio based on fair value was 12.0% at June 30, 2025 and 12.4% at December 31, 2024, excluding non-accrual and non-income producing loans. The weighted average effective yield of our total portfolio based on fair value was 10.6% at June 30, 2025 and 11.1% at December 31, 2024. At June 30, 2025, 93.8% 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 6.2% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 96.9% at June 30, 2025. Debt and preferred equity investments in eight portfolio companies were on non-accrual status as of June 30, 2025, representing 3.7% of the portfolio at fair value and 10.4% at cost. At December 31, 2024, 94.5% 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 5.5% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 97.5% at December 31, 2024. Debt and preferred equity investments in twelve portfolio companies were on non-accrual status as of December 31, 2024, representing 5.6% of the portfolio at fair value and 14.4% at cost.
Previous wording
Investment income totaled $55.9 million and $55.7 million, respectively, for the three months ended March 31, 2025 and 2024, of which $52.6 million and $54.7 million were attributable to interest and fees on our debt investments, $3.3 million and $1.0 million to dividend income and $0.0 million and $0.0 million to other income, respectively. Included in interest and fees on our debt investments were $2.4 million and $0.4 million of non-recurring income related to prepayments and $0.2 million and $0.1 million in amendment fees for the three months ended March 31, 2025 and 2024, respectively. The increase in investment income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily reflects an increase in dividend income and additional investment income earned on investments acquired as a result of the Merger, partially offset by lower interest income due to lower SOFR rates during the three months ended March 31, 2025.
Current wording
Investment income totaled $51.5 million and $71.5 million, respectively, for the three months ended June 30, 2025 and 2024, of which $50.1 million and $69.0 million were attributable to interest and fees on our debt investments, $1.4 million and $2.5 million to dividend income and $0.0 million and $0.0 million to other income, respectively. Included in interest and fees on our debt investments were $0.5 million and $6.0 million of non-recurring income related to prepayments and $0.9 million and $0.2 million in amendment fees for the three months ended June 30, 2025 and 2024, respectively. The decrease in investment income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily reflects a decrease in portfolio size and a decrease in interest income due to lower SOFR rates during the three months ended June 30, 2025.
Previous wording
Total operating expenses for the three months ended March 31, 2025 and 2024 were $23.7 million and $27.5 million, respectively, comprised of $17.1 million and $13.2 million in interest expense and related fees, $5.5 million and $5.8 million in base management fees, $1.8 million and $0.0 million in management fee waivers, $0.9 million and $0.9 million in professional fees, $0.6 million and $0.6 million in administrative expenses, $0.0 million and $5.9 million in incentive fee expense, $1.4 million and $1.1 million in other expenses, respectively. The decrease in operating expenses for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily reflects a decrease in incentive fee expense due to the Company not accruing incentive fees in the three months ended March 31, 2025 as a result of the Company's cumulative total return not exceeding the total return hurdle and a decrease in management fees due to the application of a management fee waiver during the three months ended March 31, 2025, partially offset by 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.
Current wording
Total operating expenses for the three months ended June 30, 2025 and 2024 were $23.9 million and $35.7 million, respectively, comprised of $17.1 million and $19.7 million in interest expense and related fees, $5.5 million and $6.6 million in base management fees, $0.9 million and $0.7 million in professional fees, $0.5 million and $0.6 million in administrative expenses, $0.0 million and $6.8 million in incentive fee expense, and $1.7 million and $1.3 million in other expenses, respectively, offset by $1.8 million and $0.0 million in management fee waivers. The decrease in operating expenses for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily reflects a decrease in incentive fee expense due to the Company not accruing incentive fees in the three months ended June 30, 2025 as a result of the Company's cumulative total return not exceeding the total return hurdle, a decrease in interest expense due to lower SOFR rates during the three months ended June 30, 2025 and as a result of lower debt outstanding, and a decrease in management fees due to the application of a management fee waiver during the three months ended June 30, 2025.
Previous wording
Net investment income was $32.2 million and $28.3 million, respectively, for the three months ended March 31, 2025 and 2024. The increase in net investment income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily reflects the decrease in expenses during the three months ended March 31, 2025.
Current wording
Net investment income was $27.6 million and $35.8 million, respectively, for the three months ended June 30, 2025 and 2024. The decrease in net investment income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily reflects the decrease in total investment income, partially offset by a decrease in expenses during the three months ended June 30, 2025.
Previous wording
Net realized gain (loss) for the three months ended March 31, 2025 and 2024 was $(40.9) million and $(0.2) million, respectively. Net realized loss for the three months ended March 31, 2025 was comprised primarily of $24.5 million, $7.6 million, and $6.7 million in losses from the dispositions of our investments in Securus, CIBT, and McAfee, respectively.
Current wording
Net realized gain (loss) for the three months ended June 30, 2025 and 2024 was $(66.3) million and $(35.5) million, respectively. Net realized loss for the three months ended June 30, 2025 was comprised primarily of $23.8 million, $22.5 million, $11.1 million, and $10.7 million in losses from the restructuring of our investments in SellerX, Khoros, InMoment, and Renovo, respectively. Net realized loss for the three months ended June 30, 2024 was comprised primarily of $22.8 million and $12.8 million in losses from the restructuring of our investments in Thras.io and Hylan, respectively.
Previous wording
For the three months ended March 31, 2025 and 2024, the change in net unrealized appreciation (depreciation) was $29.6 million and $(23.0) million, respectively. The change in net unrealized appreciation for the three months ended March 31, 2025 primarily reflects $23.9 million, $7.5 million and $5.3 million reversals of previously recognized unrealized losses from the dispositions of our investments in Securus, CIBT and McAfee, respectively, a $10.8 million unrealized gain on our investment in Job and Talent and a $5.3 million unrealized gain on our investment in AutoAlert, partially offset by an $8.0 million unrealized loss on our investment in Razor, a $2.7 million unrealized loss on our investment in Gordon Brothers, a $2.3 million unrealized loss on our investment in Alpine, and a $2.3 million unrealized loss on our investment in Brook & Whittle. The change in net unrealized depreciation for the three months ended March 31, 2024 of $(23.0) 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 three months ended March 31, 2024 primarily reflects a $13.4 million unrealized loss on our investment in Edmentum, a $13.2 million unrealized loss on our investment in Razor, a $6.8 million unrealized loss on our investment in Aventiv, a $6.4 million unrealized loss on our investment in Astra, a $3.3 million unrealized loss on our investment in Thras.io and a $3.1 million unrealized loss on our investment in 36th Street Capital, partially offset by a $6.3 million reversal of previously recognized unrealized loss upon the restructure of our investment in Perch.
Current wording
For the six months June 30, 2025 and 2024, the change in net unrealized appreciation (depreciation) was $52.4 million and $(74.6) million, respectively. The change in net unrealized appreciation for the six months ended June 30, 2025 primarily reflects a $23.9 million reversal of previously recognized unrealized loss from the disposition of our investment in Securus, $21.7 million, $18.8 million and $8.7 million reversals of previously recognized unrealized losses from the restructuring of our investments in Khoros, SellerX and Renovo, respectively, and a $10.5 million unrealized gain on our investment in Job and Talent, partially offset by a $10.2 million unrealized loss on our investment in Razor, an $8.1 million unrealized loss on our investment in Brook & Whittle, a $6.4 million unrealized loss on our investment in Alpine, and a $5.0 million unrealized loss on our investment in NEP Group. The change in net unrealized depreciation for the six months ended June 30, 2024 of $(74.6) 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 six months ended June 30, 2024 primarily reflects a $31.5 million unrealized loss on our investment in Seller-X, a $23.0 million unrealized loss on our investment in Pluralsight, a $17.3 million unrealized loss on our investment in Edmentum, a $14.2 million unrealized loss on our investment in Razor, a $13.0 million unrealized loss on our investment in Lithium, an $8.4 million unrealized loss on our investment in Aventiv and a $7.6 million unrealized loss on our investment in Astra, partially offset by $17.0 million, $11.0 million, and $6.3 million reversals of previously recognized unrealized losses from the restructuring of our investments in Thras.io, Hylan and Perch, respectively.
Previous wording
Incentive fees, included in operating expenses for the three months ended March 31, 2025 and 2024 were $0.0 million and $5.9 million. The decrease in incentive fee expense for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was due to the Company not accruing incentive fees for the three months ended March 31, 2025 as a result of the Company's cumulative total return not exceeding the total return hurdle.
Current wording
Incentive fees, included in operating expenses for the three months ended June 30, 2025 and 2024 were $0.0 million and $6.8 million, and for the six months ended June 30, 2025 and 2024 were $0.0 million and $12.7 million, respectively. The decrease in incentive fee expense for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 was due to the Company not accruing incentive fees for the three and six months ended June 30, 2025 as a result of the Company's cumulative total return not exceeding the total return hurdle.
Previous wording
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 three months ended March 31, 2025.
Current wording
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 six months ended June 30, 2025.
Previous wording
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
Current wording
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.
Previous wording
The net increase (decrease) in net assets applicable to common shareholders resulting from operations was $20.9 million and $5.1 million for the three months ended March 31, 2025 and 2024, respectively. The higher net increase in net assets resulting from operations during the three months ended March 31, 2025 was primarily due to lower net realized and unrealized losses and higher net investment income compared to the three months ended March 31, 2024.
Current wording
The net increase (decrease) in net assets applicable to common shareholders resulting from operations was $(15.9) million and $(51.3) million for the three months ended June 30, 2025 and 2024, respectively. The lower net decrease in net assets resulting from operations during the three months ended June 30, 2025 was primarily due to lower net realized and unrealized losses, partially offset by lower net investment income compared to the three months ended June 30, 2024.
Previous wording
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 three months ended March 31, 2025, approximately $1.4 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 wording
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 six months ended June 30, 2025, approximately $1.8 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.
Previous wording
The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the three months ended March 31, 2025:
Current wording
The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the six months ended June 30, 2025:
Previous wording
No shares were repurchased by the Company under the Company Repurchase Plan for the three months ended March 31, 2024.
Current wording
No shares were repurchased by the Company under the Company Repurchase Plan for the six months ended June 30, 2024.
Previous wording
Effective November 7, 2018, the Company’s Board of Directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of our Board of Directors, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the SBCAA (the “Asset Coverage Ratio Election”), which would have resulted (had the Company not received earlier shareholder approval) in our asset coverage requirement applicable to senior securities being reduced from 200% to 150%, effective on November 7, 2019. On February 8, 2019, the shareholders of the Company approved the Asset Coverage Ratio Election, and, as a result, effective on February 9, 2019, our asset coverage requirement applicable to senior securities was reduced from 200% to 150%. As of March 31, 2025, the Company’s asset coverage ratio was 179.0%.
Current wording
Effective November 7, 2018, the Company’s Board of Directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of our Board of Directors, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the SBCAA (the “Asset Coverage Ratio Election”), which would have resulted (had the Company not received earlier shareholder approval) in our asset coverage requirement applicable to senior securities being reduced from 200% to 150%, effective on November 7, 2019. On February 8, 2019, the shareholders of the Company approved the Asset Coverage Ratio Election, and, as a result, effective on February 9, 2019, our asset coverage requirement applicable to senior securities was reduced from 200% to 150%. As of June 30, 2025, the Company’s asset coverage ratio was 169.8%.
Previous wording
Net cash provided by operating activities during the three months ended March 31, 2025 was $52.5 million, consisting primarily of $21.7 million in net investment income (net of non-cash income and expenses) and the settlement of dispositions of investments (net of acquisitions) of $30.8 million.
Current wording
Net cash provided by operating activities during the six months ended June 30, 2025 was $10.6 million, consisting primarily of $40.5 million in net investment income (net of non-cash income and expenses) and the settlement of acquisitions of investments (net of dispositions) of $(29.9) million.
Previous wording
Net cash used by financing activities was $45.0 million during the three months ended March 31, 2025, consisting primarily of a $20.3 million in net credit facility repayments, $24.7 million in dividends paid to common shareholders and $0.0 million in repurchases of shares.
Current wording
Net cash provided by financing activities was $5.1 million during the six months ended June 30, 2025, consisting primarily of a $54.7 million in net credit facility draws, offset by $49.3 million in dividends paid to common shareholders and $0.3 million in repurchases of shares.
Previous wording
At March 31, 2025, we had $99.1 million in cash and cash equivalents.
Current wording
At June 30, 2025, we had $107.3 million in cash and cash equivalents.
Previous wording
The following tables summarize dividends declared for the three months ended March 31, 2025 and 2024:
Current wording
The following tables summarize dividends declared for the six months ended June 30, 2025 and 2024:
Previous wording
On May 8, 2025, the Company’s Board of Directors declared a second quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on June 30, 2025 to shareholders of record as of the close of business on June 16, 2025.
Current wording
On August 7, 2025, the Company’s Board of Directors declared a third quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on September 30, 2025 to shareholders of record as of the close of business on September 16, 2025.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Investment income totaled $107.4 million and $127.3 million, respectively, for the six months ended June 30, 2025 and 2024, of which $102.6 million and $123.7 million were attributable to interest and fees on our debt investments, $4.7 million and $3.5 million to dividend income and $0.1 million and $0.1 million to other income, respectively. Included in interest and fees on our debt investments were $2.9 million and $6.4 million of non-recurring income related to prepayments and $1.1 million and $0.4 million in amendment fees for the six months ended June 30, 2025 and 2024, respectively. The decrease in investment income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily reflects a decrease in portfolio size and a decrease in interest income due to lower SOFR rates during the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Total operating expenses for the six months June 30, 2025 and 2024 were $47.6 million and $63.2 million, respectively, comprised of $34.2 million and $33.0 million in interest expense and related fees, $10.9 million and $12.4 million in base management fees, $1.8 million and $1.6 million in professional fees, $1.2 million and $1.2 million in administrative expenses, $0.0 million and $12.7 million in incentive fee expense, and $3.1 million and $2.3 million in other expenses, respectively, offset by $3.6 million and $0.0 million in management fee waivers. The decrease in operating expenses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily reflects a decrease in incentive fee expense due to the Company not accruing incentive fees in the six months ended June 30, 2025 as a result of the Company's cumulative total return not exceeding the total return hurdle and a decrease in management fees due to the application of a management fee waiver during the six months ended June 30, 2025.
Current report — wording carried from elsewhere
For the three months ended June 30, 2025 and 2024, the change in net unrealized appreciation (depreciation) was $22.8 million and $(51.6) million, respectively. The change in net unrealized appreciation for the three months ended June 30, 2025 primarily reflects $23.1 million, $20.3 million, $9.5 million and $7.7 million reversals of previously recognized unrealized losses from the restructuring of our investments in Khoros, SellerX, Renovo and InMoment, respectively, partially offset by a $9.6 million unrealized loss on our investment in AutoAlert, a $5.9 million unrealized loss on our investment in Brook & Whittle, a $4.7 million unrealized loss on our investment in 36th Street Capital, a $4.1 million unrealized loss on our investment in NEP Group, and a $4.1 million unrealized loss on our investment in Alpine. The change in net unrealized depreciation for the three months ended June 30, 2024 primarily reflects a $31.2 million unrealized loss on our investment in SellerX, a $20.8 million unrealized loss on our investment in Pluralsight, an $11.3 million unrealized loss on our investment in Lithium, and a $4.0 million unrealized loss on our investment in Edmentum and other unrealized losses across the portfolio, partially offset by $18.9 million and $12.3 million reversals of previous unrealized losses from the restructuring of our investments in Thras.io and Hylan, respectively.
Current report — wording carried from elsewhere
The net increase (decrease) in net assets applicable to common shareholders resulting from operations was $5.0 million and $(46.2) million for the six months ended June 30, 2025 and 2024, respectively. The increase in net assets resulting from operations during the six months ended June 30, 2025 was primarily due to lower net realized and unrealized losses, partially offset by lower net investment income compared to the six months ended June 30, 2024.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
On April 29, 2025, the Company’s Board of Directors re-approved the Company Repurchase Plan, to be in effect through the earlier of April 30, 2026, unless further extended or terminated by the Company's Board of Directors, or such time as the approved $50 million repurchase amount has been fully utilized, subject to certain conditions.