BlackRock TCP Capital Corp.

Ladies and gentlemen, good afternoon. Welcome everyone to BlackRock TCP Capital Corp Q1 2025 earnings call. Today's conference call is being recorded for replay purposes. During the presentation, all participants will be in a listen only mode. A question and answer session will follow the company's formal remarks. To ask a question, please press the star key followed by the digit 1. I will repeat these instructions before we begin the Q&A session. And now I would like to turn the call over to Michaela Murray, a member of the BlackRock TCP Capital Corp Investor Relations team. Michaela, please proceed.

Thank you. Before we begin, I'll note that this conference call may contain forward looking statements based on the estimates and assumptions of management at the time of such statements and are not guarantees of future performance. Forward looking statements involve risks and uncertainties and actual results could differ materially from those projected. Any forward-looking statements made on this call are made as of today and are subject to change without notice. Additionally, certain information discussed and presented may have been derived from third-party sources and has not been independently verified. Accordingly, we make no representation or warranty with respect to such information. Earlier today, we issued our earnings release for the first quarter ended March 31, 2025. We also posted a supplemental earnings presentation to our website at www.tcpcapital.com. To view the slide presentation, which we will refer to on today's call, please click on the investor relations link and select events and presentations. These documents should be reviewed in conjunction with the company's form 10Q, which was filed with the SEC earlier today. Now I will turn the call over to our chairman, co-CIO, and CEO, Phil Tseng.

Thank you, Michaela, and thank you all for joining our call. Today I'll begin with a brief overview of our results for the quarter and then share an update on our portfolio. After that, I'll turn the call over to our president, Jason Mehring, to review details of our investment activity. Eric Cuellar, our CFO, will then review our financial results in more detail. I'll follow Eric's remarks with commentary on the current market environment before we open the call up for questions. We're also joined today by Dan Worrell, our co-CIO. Patrick Wolf, our COO. I am pleased to report that during the first quarter, we made meaningful progress in strengthening the portfolio. Although the impact of global macroeconomic factors, including tariffs, remains uncertain, we are beginning to see signs of portfolio stabilization. We delivered solid results for the quarter. Adjusted net investment income was 36 cents per share, flat with the prior quarter. annualized net investment income ROE was 15.4%, and the net asset value per share was $9.18 compared to $9.23 in the fourth quarter. During the first quarter, no new names were added to the non-accrual list, and the number of portfolio companies on non-accrual status at quarter end declined meaningfully to eight from 12 in the prior quarter. Non-accruals now comprise 4.4% of our portfolio at fair value, down from 5.6%, or 120 basis points sequentially. During the quarter, we exited our non-accrual positions in Securus, McAfee, CIBT, and Avanti, all of which were broadly syndicated second lien loans that we believed offered limited near-term upside. As we pointed out last quarter, we are primarily focused on investing in first lien loans and will only consider second lien loans in situations where we are a lender of influence. Subsequent to quarter end, we removed Renovo from non-accrual following the completion of a comprehensive recapitalization which significantly delivered its balance sheet. Since the recapitalization, we have remained actively engaged with Renovo's management team as they pursue a variety of initiatives aimed at improving performance. As a result of this action, our pro forma non accrual percentage post quarter end has decreased to 4.1% at fair value and 11.8% at cost. Our largest markdowns during the quarter were Razor Group, Gordon Brothers, and Alpine, also known as 4840, which is a pallet management services provider that we haven't previously discussed. 4840 benefited from increased pallet demand coming out of COVID, but as the market began to normalize in 2023, volumes declined. While a slower than anticipated market recovery has pressured performance, we remain confident in 4840's position as a leader within the pallet space, which is a critical element of the supply chain and transport of essential goods. We will continue to monitor closely 4840's performance and industry trends more broadly. We are focused on optimizing the outcome for each of these investments, and we are actively exploring solutions for our positions in the aggregators as well. Our largest markups were Job & Talent, a tech-enabled staffing agency, and AutoAlert, an automotive data analytics platform, which we previously removed from our non-accrual status in the first quarter of 2023. We recently provided growth capital to Job & Talent to accelerate the execution of their long-term strategic plan Job and talent continues to perform well and is delivering year-over-year revenue growth supported by accelerating demand in the staffing industry, as well as higher levels of profitability, reflecting their success in streamlining their operations. The deal structure for the job and talent investment provided upside to lenders based on improved value creation and performance, which contributed to the meaningful markup this quarter. Regarding auto alert, after nearly a decade as a lender, we assume control the company in March of 2023 as part of a restructuring. Since then, Auto Alert has shown consistent financial performance and recently reported its second consecutive year of earnings growth, which contributed to the write-up of its value this quarter. Now turning to our dividend. In line with our revised dividend policy, our board declared a second quarter dividend of 25 cents and a special dividend of 4 cents per share. Both are payable on June 30, 2025 to shareholders of record on June 16, 2025. We appreciate the continued support of our shareholders as we reposition our portfolio to deliver consistent, attractive returns. In addition to operating with our longstanding shareholder-friendly fee structure and waiving one-third of our base management fee through September 30, 2025, we repurchased 3,150 shares of TCP stock this quarter and an additional 39,500 shares after quarter end. Now, I'll turn the call over to Jason to provide more detail on our portfolio along with our investment activity during the quarter.