BlackRock TCP Capital Corp. - Annual Report: 2020 (Form 10-K)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

______________________

FORM 10-K


☒			Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

			For the Year Ended December 31, 2020

☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 814-00899

______________________

BLACKROCK TCP CAPITAL CORP.

(Exact Name of Registrant as Specified in Charter)

______________________


Delaware			56-2594706
(State or Other Jurisdiction of Incorporation)			(IRS Employer Identification No.)

2951 28th Street, Suite 1000
Santa Monica, California			90405
(Address of Principal Executive Offices)			(Zip Code)

(310) 566-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Common Stock, par value $0.001 per share	TCPC	NASDAQ Global Select Market
(Title of each class)	(Trading Symbol(s) )	(Name of each exchange where registered)

Securities registered pursuant to Section 12(g) of the Act: None

______________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act: Yes x No ¨

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days: Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer x			Accelerated filer ¨
Non-accelerated filer ¨			Smaller Reporting company ¨

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ¨ No x

The aggregate market value of the Registrant’s common stock held by non-affiliates of the Registrant at June 30, 2020 (the last business day of the Registrant’s most recently completed second quarter) was $528.0 million based upon the last sales price reported for such date on The NASDAQ Global Select Market. For purposes of this disclosure, shares of common stock beneficially owned by executive officers and directors of the Registrant and members of their families have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily conclusive for other purposes. The Registrant has no non-voting common stock.

The number of shares of the Registrant’s common stock, $0.001 par value, outstanding as of February 24, 2021 was 57,767,264.

Documents Incorporated by Reference: Portions of the Registrant’s Proxy Statement relating to the Registrant’s 2021 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference into Part III of this Report.

BLACKROCK TCP CAPITAL CORP.

FORM 10-K

FOR THE YEAR ENDED DECEMBER 31, 2020

TABLE OF CONTENTS


		Page
PART I
Item 1.	Business	3
Item 1A.	Risk Factors	27
Item 1B.	Unresolved Staff Comments	67
Item 2.	Properties	67
Item 3.	Legal Proceedings	67
Item 4.	Mine Safety Disclosures	67
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	68
Item 6.	Selected Financial Data	7 3
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	7 4
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	9 1
Item 8.	Financial Statements and Supplementary Data	9 2
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	15 1
Item 9A.	Controls and Procedures	15 1
Item 9B.	Other Information	152
PART III
Item 10.	Directors, Executive Officer Directors, Executive Officers and Corporate Governance and Corporate Governance	152
Item 11.	Executive Compensation	15 2
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	15 2
Item 13.	Certain Relationships and Related Transactions, and Director Independence	15 2
Item 14.	Principal Accountant Fees and Services	152
PART IV
Item 15.	Exhibits and Financial Statement Schedules	152
	Signatures	156

Part I

Summary of Risk Factors

The risk factors described below are a summary of the principal risk factors associated with an investment in us. These are not the only risks we face. You should carefully consider these risk factors, together with the risk factors set forth in Item 1A of this Annual Report on Form 10-K and the other reports and documents filed by us with the SEC.

Risks Related to Our Business

•Events outside of our control, including public health crises, may negatively affect the results of our operations.

•Capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect debt and equity capital markets in the United States and abroad, which may have a negative impact on our business and operations.

•Price declines and illiquidity in the corporate debt markets have adversely affected, and may in the future adversely affect, the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation.

•Changes in legal, tax and regulatory regimes could negatively impact our business, financial condition and earnings.

•Market disruptions and other geopolitical or macroeconomic events could create market volatility that negatively impact our business, financial condition and earnings.

•Rising interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations.

•Changes relating to the LIBOR calculation process, the phase-out of LIBOR and the use of replacement rates for LIBOR may adversely affect the value of our portfolio securities.

•Our use of borrowed funds, including under the Leverage Program, to make investments exposes us to risks typically associated with leverage.

•The creditors under the SVCP Facility and TCPC Funding II Facility have a first claim on all of the Company’s assets included in the collateral for the respective facilities.

•The SBIC is subject to SBA regulations, and any failure to comply with SBA regulations could have an adverse effect on our operations.

•If we incur additional leverage, it will increase the risk of investing in shares of our common stock.

•The lack of liquidity in substantially all of our investments may adversely affect our business.

•A substantial portion of our portfolio investments are recorded at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors, who also approve in good faith the valuation of such securities and, as a result, there may be uncertainty regarding the value of our portfolio investments.

•Our Advisor and its affiliates and employees may have certain conflicts of interest.

•Our incentive compensation may induce our Advisor to make certain investments, including speculative investments.

•Because we intend to distribute substantially all of our income to our stockholders to maintain our status as a RIC, we will continue to need additional capital to finance growth. If additional funds are unavailable or not available on favorable terms, our ability to grow will be impaired.

•The highly competitive market in which we operate may limit our investment opportunities.

•Our board of directors may change our operating policies and strategies without prior notice or stockholder approval.

Risks Related to Our Investments

•Our investments are risky and highly speculative, and we could lose all or part of our investment.

•Because our investments are generally not in publicly traded securities, there will be uncertainty regarding the value of our investments, which could adversely affect the determination of our net asset value.

•Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

•Our portfolio companies may be highly leveraged.

Risks Related to Our Operations as a BDC

•While our ability to enter into transactions with our affiliates is restricted under the 1940 Act, we have received an exemptive order from the SEC permitting certain affiliated investments subject to certain conditions. As a result, the Advisor may face conflicts of interests and investments made pursuant to the exemptive order conditions could in certain circumstances adversely affect the price paid or received by us or the availability or size of the position purchased or sold by us.

•Regulations governing our operation as a BDC affect our ability to, and the way in which we, raise additional capital.

•Changes in the laws or regulations governing our business or the business of our portfolio companies, or changes in the interpretations thereof or newly enacted legislation and regulations, and any failure by us or our portfolio companies to comply with these laws or regulations, could have a material adverse effect on our business, results of operations or financial condition of us or our portfolio companies.

•If we do not invest a sufficient portion of our assets in qualifying assets, we could be precluded from investing in certain assets or could be required to dispose of certain assets, which could have a material adverse effect on our business, financial condition and results of operations.

•We will be subject to corporate-level U.S. federal income tax on all of our income if we are unable to qualify as a RIC under the Code, which could have a material adverse effect on our financial performance.

•There is a risk that you may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital

•We may experience cyber-security incidents and are subject to cyber-security risks.

Risks Relating to Our Common Stock and Other Securities

•Our shares of common stock have traded at a discount from net asset value and may do so again in the future, which could limit our ability to raise additional equity capital.

•Investing in our common stock may involve an above average degree of risk.

•The market price of our common stock may fluctuate significantly.

•Stockholders will likely incur dilution if we sell or otherwise issue shares of our common stock or securities to subscribe for or convertible into shares of our common stock at prices below the then current net asset value per share of our common stock.

•Terms relating to redemption may materially adversely affect your return on any debt securities that we may issue.

•Our credit ratings may not reflect all risks of an investment in our debt securities.

Item 1. Business

General

In this annual report in Form 10-K, except as otherwise indicated, the terms:

“Company,” "we," "us" and "our" refer to Special Value Continuation Fund, LLC, a Delaware limited liability company, for the periods prior to the consummation of the Conversion described elsewhere in this report and to BlackRock TCP Capital Corp., formerly known as TCP Capital Corp., for the periods after the consummation of the Conversion;

“SVCP” refers to Special Value Continuation Partners LLC, a Delaware limited liability company;

“TCPC Funding” refers to TCPC Funding I, LLC, a Delaware limited liability company;

“TCPC Funding II” refers to TCPC Funding II, LLC, a Delaware limited liability company;

The “SBIC” refers to TCPC SBIC, LP, a Delaware limited partnership;

The “Advisor” refers to Tennenbaum Capital Partners, LLC, a Delaware limited liability company and the investment manager; and

“Administrator” refers to Series H of SVOF/MM, LLC, a series of a Delaware limited liability company, an affiliate of the Advisor and administrator of the Company.

The Company is a Delaware corporation formed on April 2, 2012 and is an externally managed, closed-end, non-diversified management investment company. We have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. We seek to achieve our investment objective primarily through investments in debt securities of middle-market companies, which we typically define as those with enterprise values between $100 million and $1.5 billion. While we intend to primarily focus on privately negotiated investments in debt of middle-market companies, we may make investments of all kinds and at all levels of the capital structure, including in equity interests such as preferred or common stock and warrants or options received in connection with our debt investments. Our investment activities will benefit from what we believe are the competitive advantages of our Advisor, including its diverse in-house skills, proprietary deal flow, and consistent and rigorous investment process focused on established, middle-market companies. We expect to generate returns through a combination of the receipt of contractual interest payments on debt investments and origination and similar fees, and, to a lesser extent, equity appreciation through options, warrants, conversion rights or direct equity investments.

Investment operations are conducted through the Company’s wholly-owned subsidiaries, SVCP, TCPC Funding, TCPC Funding II and the SBIC. SVCP was organized as a limited partnership and had elected to be regulated as a BDC under the 1940 Act through July 31, 2018. On August 1, 2018, SVCP withdrew its election to be regulated as a BDC under the 1940 Act and withdrew the registration of its common limited partner interests under Section 12(g) of the Securities Exchange Act of 1934 and, on August 2, 2018, terminated its general partner, Series H of SVOF/MM, LLC, and converted to a Delaware limited liability company. The managing member of SVOF/MM is Tennenbaum Capital Partners, LLC (the “Advisor”), which serves as the investment manager to the Company, TCPC Funding, and the SBIC. On August 1, 2018, the Advisor merged with and into a wholly-owned subsidiary of BlackRock Capital Investment Advisors, LLC, an indirect wholly-owned subsidiary of BlackRock, Inc. with the Advisor as the surviving entity. BlackRock, Inc., along with its subsidiaries is referred to herein as “BlackRock”.

The Company has elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes. As a RIC, we will not be taxed on our income to the extent that we distribute such income each year and satisfy other applicable income tax requirements. SVCP was treated as a partnership for U.S. federal income tax purposes through August 1, 2018, and upon its conversion to a limited liability company on August 2, 2018 and thereafter is and will be treated as a disregarded entity.

On April 2, 2012, the Company converted from a limited liability company to a corporation (the “Conversion”). At the time of the Conversion, all limited liability company interests of Special Value Continuation Fund, LLC (“SVCF”) were exchanged for 15,725,635 shares of common stock in the Company. As a result of the Conversion, the books and records of SVCF became the books and records of the Company.

On April 3, 2012, the Company priced its initial public offering (the “Offering”), selling 5,750,000 shares of its common stock at a public offering price of $14.75 per share.

To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders generally at least 90% of our investment company taxable income, as defined by the Internal Revenue Code of 1986, as amended (the “Code”), for each year. Pursuant to this election, we generally will not have to pay corporate level taxes on any income that we distribute to our stockholders provided that we satisfy those requirements.

The Advisor

Our investment activities are managed by the Advisor. The Advisor is a Delaware limited liability company and is registered as an investment advisor under the Investment Advisers Act of 1940. The Advisor is a wholly-owned, indirect subsidiary of BlackRock, Inc. BlackRock is the world’s largest publicly traded investment management firm, with approximately $8.7 trillion of assets under management as of December 31, 2020. BlackRock manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, real estate, cash management and alternative investment products. BlackRock serves clients in North and South America, Europe, Asia, Australia, Africa and the Middle East. Headquartered in New York, BlackRock maintains offices in over 30 countries, including 25 primary investment centers. BlackRock’s institutional knowledge includes proprietary valuation techniques, market outlook, competitive evaluation and structuring and operational expertise. In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services to a growing number of institutional investors. Through BlackRock Solutions®, BlackRock provides risk management and advisory services that combine capital markets expertise with internally-developed systems and technology.

The investment professionals of the Advisor have significant industry experience, including experience investing in middle-market companies. Together, they have invested approximately $30.0 billion in 753 companies since the Advisor’s inception in 1999, through multiple business and credit cycles, across all segments of the capital structure and through a broad set of credit-oriented strategies including leveraged loan origination, secondary investments of discounted debt securities, and distressed and control opportunities. We believe that the Advisor's investment perspectives, complementary skills, and collective investment experience along with BlackRock’s resources, relationships and global platform provide the Advisor with a strategic and competitive advantage in middle-market investing.

As our investment advisor, the Advisor is responsible for sourcing potential investments, conducting research, analyzing investment opportunities and structuring our investments and monitoring our portfolio companies on an ongoing basis. We believe that the Advisor has a proven long-term track record of positive performance, notwithstanding some periods during which losses were incurred, of sourcing deals, originating loans and successfully investing in middle-market companies and that the relationships of its investment professionals are integral to the Advisor’s success. The Advisor’s investment professionals have long-term working relationships with key sources of investment opportunities and industry expertise, including investment bankers, financial advisors, attorneys, private equity sponsors, other senior lenders, high-yield bond specialists, research analysts, accountants, and senior management teams. Additionally, BlackRock’s broad and established sourcing network along with the Advisor’s board of advisors and senior executive advisors from a variety of industries extend the reach of the Advisor’s relationships and can enhance our deal sourcing and due diligence activities.

We also benefit from the existing infrastructure and administrative capabilities of an established investment manager. The Administrator, an affiliate of the Advisor, provides us with office space, equipment and office services. The tasks of our Administrator include overseeing our financial records, preparing reports to our stockholders and reports filed with the SEC and generally monitoring the payment of our expenses and the performance of administrative and professional services rendered to us by others.

Since the beginning of 2011, the Advisor executed across its funds approximately $17.7 billion in direct origination leveraged loans primarily to middle-market companies, of which approximately $4.8 billion was for our account. There can be no assurance that similar deal flow or terms will be available in the future for loans in which we may invest.

Operating and Regulatory Tax Structure

The Company elected to be treated for U.S. federal income tax purposes as a RIC under the Code. As a RIC, the Company generally does not have to pay corporate-level federal income taxes on any net ordinary income or capital gain that we distribute to our stockholders as dividends if we meet certain source-of-income, distribution and asset diversification requirements. The Company has elected to be regulated as a BDC under the 1940 Act. As a BDC we

are required to invest at least 70% of our total assets primarily in securities of private and certain public U.S. companies (other than investment companies and certain financial institutions), cash, cash equivalents, U.S. Government securities, and other high-quality debt investments that mature in one year or less and to comply with other regulatory requirements, including limitations on our use of debt.

Investment Strategy

To achieve our investment objectives, we intend to focus on a subset of the broader investment strategies historically pursued by the Advisor. Our primary investment focus is the ongoing origination of and investments in leveraged loans of performing middle-market companies, building on the Advisor’s established track record of origination and participation in the original syndication of approximately $21.5 billion of leveraged loans to 528 companies since 1999, of which we invested over $5.4 billion in 281 companies. For the purposes of this filing, the term “leveraged loans” refers to senior debt investments that rank ahead of subordinated debt and that generally have the benefit of security interests in the assets of the borrower. Our investments generally range from $10 million to $50 million per company, the size of which may grow over time in proportion with our capital base. We expect to generate current returns through a combination of the receipt of contractual interest payments on debt investments and origination and similar fees, and, to a lesser extent, equity appreciation through options, warrants, conversion rights or direct equity investments. We often receive equity interests such as preferred or common stock and warrants or options in connection with our debt investments. From time to time we may also use other investment strategies, which are not our primary focus, to attempt to enhance the overall return of our portfolio. These investment strategies may include, but are not limited to, the purchase of discounted debt, opportunistic investments, and financial instruments to hedge currency or interest rate risk associated with our portfolio.

Our typical investments are in performing middle-market companies. We believe that middle-market companies are generally less able to secure financing than larger companies and thus offer better return opportunities for those able to conduct the necessary diligence to appropriately evaluate these companies. We focus primarily on U.S. companies where we believe our Advisor’s perspective, complementary skills and investment experience provides us with a competitive advantage and in industries where our Advisor sees an attractive risk reward profile due to macroeconomic trends and existing Advisor industry expertise.

Investment Portfolio

At December 31, 2020, our investment portfolio of $1,629.6 million (at fair value) consisted of 96 portfolio companies and was invested 88.7% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 82.8% in senior secured loans, 5.9% in senior secured notes and 11.3% in equity investments. Our average portfolio company investment at fair value was approximately $17.0 million. Our largest portfolio company investment by value was approximately 4.5% of our portfolio and our five largest portfolio company investments by value comprised approximately 18.0% of our portfolio at December 31, 2020.

The following charts summarize our portfolio mix by industry and type based on the fair value of our investments as of December 31, 2020.

Investment Process

The Advisor’s investment process is designed to maximize its strategic advantages: a strong brand name as a specialty lender to the middle-market and diverse in-house expertise and skills. The Advisor seeks out opportunities by conducting a rigorous and disciplined investment process that combines the following characteristics:

Deal Sourcing

As a leading middle-market corporate debt investment manager with approximately $13 billion in committed capital as of December 31, 2020 (approximately 15% of which consists of the Company’s committed capital) and which has invested on behalf of institutions since 1999, the Advisor is active in new deal financing opportunities in the middle-market segment. However, we believe that the Advisor’s real deal flow advantage comes from the proprietary network of established relationships of its investment professionals and synergies among its professionals and portfolio companies. Members of the Advisor’s Investment Committee for the Company (the “Investment Committee”) have long-term relationships with deal sources including investment bankers, restructuring professionals, bankruptcy attorneys, senior lenders, high yield bond specialists, research analysts, accountants, fund management teams, the Advisor’s advisory board, senior executive advisors, board members of former clients, former colleagues and other operating professionals to facilitate deal flow. The Investment Committee is currently comprised of five voting members. In total, the Investment Committee consists of approximately 30 members from the Advisor. The number of voting and non-voting members of the Investment Committee is subject to increase or decrease in the sole discretion of the Advisor. All members of the Investment Committee attend investment meetings and are encouraged to participate in discussions. In addition, members of the Investment Committee have relationships with other investors, including insurance companies, bond funds, mezzanine funds, private equity funds, hedge funds and other funds which invest in similar assets. Further, the Advisor regularly calls on both active and recently retired senior executives from the relevant industries to assist with the due diligence of potential investments. Historically, these relationships with retired senior executives have also been a valuable source of transactions and information. The Advisor anticipates that they will continue to provide future opportunities. We believe the Advisor’s strong relationships with its portfolio companies facilitate positive word-of-mouth recommendations to other companies seeking the Advisor’s expertise. The Advisor’s relationships often result in the ability to access investment opportunities earlier than many of its competitors and in some cases on an exclusive basis.

Due Diligence Process

The foundation of the Advisor’s investment process is intensive investment research and analysis by its experienced staff of investment professionals. The Advisor’s senior professionals have worked together for numerous years and we believe that they have a superior level of credit investing knowledge relative to other credit

investors. The Advisor supplements its in-house knowledge with industry experts, including CEO/CFO-level executives, with direct management experience in the industries under consideration. The Advisor prefers these industry experts to consultants because of the practical business advice that comes from having managed businesses. The Advisor rigorously and comprehensively analyzes issuers of securities of interest. The process includes a quantitative and qualitative assessment of the issuer’s business, an evaluation of its management, an analysis of the business strategy and industry trends, and an in-depth examination of the company’s capital structure, financial results and projections. The Advisor’s due diligence process includes:

• an assessment of the outlook for the industry and general macroeconomic trends;

• discussions with issuer management and other industry executives, including the assessment of management/board strengths and weaknesses;

• an analysis of the fundamental asset values and the enterprise value of the issuer;

• review of the issuer’s key assets, core competencies, competitive advantages, historical and projected financial statements, capitalization, financial flexibility, debt amortization requirements, and tax, environmental, legal and regulatory contingencies;

• review of the issuer’s existing credit documents, including credit agreements, indentures, intercreditor agreements, and security agreements; and

• review of documents governing the issuer, including charter, by-laws, and key contracts.

As a part of its due diligence process, the Advisor considers sustainability-related factors that can affect the future prospects of the issuer. Since sustainable investment options have the potential to offer better outcomes, the Advisor integrates sustainability considerations into the way the it manages risk, constructs portfolios, designs products, and engages with companies.

Structuring Originations

As an early non-bank participant in the leveraged loan market, we believe that loan origination is a core competency of the Advisor. Supplementing industry deal teams’ experience and competency, the Advisor has a number of professionals with legal experience, including significant experience in bankruptcy and secured credit. Deal teams work with the Advisor’s in-house legal specialists and outside counsel to structure over-collateralized loans with what we believe to be strong creditor protections and contractual controls over borrower operations. In many cases, the Advisor works to obtain contractual governance rights and board observer seats to protect principal and maximize post-investment returns. Deals usually include original issue discounts, upfront fees, exit fees and/or equity participations through warrants or direct equity stakes.

Trading and Secondary Market Purchases

A key element in maximizing investment returns in secondary purchases is buying and selling investments at the best available prices. The Advisor has a dedicated trading staff for both the highly specialized traded loan market and for high-yield bonds. Through its trading operations, the Advisor maintains its established relationships with a network of broker-dealers in the debt securities markets. These relationships provide the Advisor with access to the trading dynamics of existing or potential investments and assist it in effectively executing transactions. These relationships may also lead to the early identification of potential investment opportunities for the Company.

Portfolio Management & Monitoring

The Advisor actively monitors the financial performance of its portfolio companies and market developments. This constant monitoring permits the Advisor to update position risk assessments, seek to address potential problems

early, refine exit plans, and make follow-on investment decisions quickly. We view active portfolio monitoring as a vital part of our investment process.

We consider board observation and information rights, regular dialogue with company management and sponsors, and detailed internally generated monitoring reports to be critical to our performance. We have developed a monitoring template that seeks to ensure compliance with these standards and that is used as a tool by the Investment Committee to assess investment performance relative to plan.

• Deal teams maintain contact with portfolio company management through regularly scheduled and ad hoc conference calls and onsite visits.

• Deal teams review portfolio company progress relative to plan and pre-determined performance benchmarks.

• Adverse or unexpected developments, as well as consequential routine updates, are reported to the Investment Committee and thoroughly discussed at regularly scheduled weekly meetings. If merited, the Investment Committee will hold ad hoc meetings as necessary to address urgent issues.

• Deal teams, with Investment Committee approval, encourage portfolio company managers to catalyze events to monetize holdings for greater return, or where needed, take corrective actions to address shortfalls to plan or benchmarks.

• All existing portfolio holdings are formally reviewed in detail by the entire Investment Committee once per quarter at the Advisor’s quarterly portfolio review.

Investment Committee and Decision Process

The Advisor’s investment process is organized around the Investment Committee that provides for a centralized, repeatable decision process. The Investment Committee meets weekly and, with respect to each fund the Advisor advises, certain members of the Investment Committee are voting members. The voting members of the Investment Committee for the Company are currently Howard M. Levkowitz, Philip M. Tseng, Rajneesh Vig, Rob DiPaulo and Brad Pritchard. Approval by a simple majority vote of the voting members of the Investment Committee for each respective fund is required for the purchase or sale of any investment, with certain de-minimis exceptions. No voting member has veto power. The Advisor’s investment process is designed to maximize risk-adjusted returns and preserve downside protection.

Regulation

We have filed an election to be regulated as a BDC under the 1940 Act. The 1940 Act contains prohibitions and restrictions relating to transactions between BDCs and their affiliates (including any investment advisors or co-advisors), principal underwriters and affiliates of those affiliates or underwriters and requires that a majority of the directors be persons other than “interested persons,” as that term is defined in the 1940 Act. In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by “a majority of our outstanding voting securities”, which is defined in the 1940 Act as the lesser of a majority of the outstanding voting securities or 67% or more of the securities voting if a quorum of a majority of the outstanding voting securities is present.

We may invest up to 100% of our assets in securities acquired directly from issuers in privately negotiated transactions. With respect to such securities, we may, for the purpose of public resale, be deemed an “underwriter” as that term is defined in the Securities Act of 1933, or the Securities Act. We do not intend to acquire securities issued by any investment company that exceed the limits imposed by the 1940 Act. Under these limits, except for registered money market funds we generally cannot acquire more than 3% of the voting stock of any investment company, invest more than 5% of the value of our total assets in the securities of one investment company or invest more than 10% of the value of our total assets in the securities of more than one investment company. With regard to

that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might indirectly subject our stockholders to additional expenses as they will indirectly be responsible for the costs and expenses of such companies. None of our investment policies are fundamental and any may be changed without stockholder approval.

Qualifying assets

Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. The principal categories of qualifying assets relevant to our proposed business are the following:

• Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer which:

• is organized under the laws of, and has its principal place of business in, the United States;

• is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and

• satisfies either of the following:

• has a market capitalization of less than $250.0 million or does not have any class of securities listed on a national securities exchange; or

• is controlled by a BDC or a group of companies including a BDC, the BDC actually exercises a controlling influence over the management or policies of the eligible portfolio company, and, as a result thereof, the BDC has an affiliated person who is a director of the eligible portfolio company.

• Securities of any eligible portfolio company which we control.

• Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.

• Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company.

• Securities received in exchange for or distributed on or with respect to securities described above, or pursuant to the exercise of warrants or rights relating to such securities.

• Cash, cash equivalents, U.S. Government securities or high-quality debt securities maturing in one year or less from the time of investment.

Asset Coverage Requirement

BDC, of at least 200%. On March 23, 2018, the Small Business Credit Availability Act (“SBCAA”) was signed into law, which among other things, amended Section 61(a) of the 1940 Act to add a new Section 61(a)(2) that reduces the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements and obtains certain approvals. The reduced asset coverage requirement permits a BDC to have a ratio of total consolidated assets to outstanding indebtedness of 2:1 as compared to a maximum of 1:1 under the 200% asset coverage requirement.

In accordance with the 1940 Act, with certain limited exceptions, we were allowed to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, equaled at least 200% after such borrowing. 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 stockholder 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 stockholders 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%.

Managerial assistance to portfolio companies

A BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in “Qualifying assets” above. However, in order to count portfolio securities as qualifying assets for the purpose of the 70% test, the BDC must either control the issuer of the securities or must offer to make available to the issuer of the securities significant managerial assistance. Where the BDC purchases such securities in conjunction with one or more other persons acting together, the BDC will satisfy this test if one of the other persons in the group makes available such managerial assistance, although reliance on other investors may not be the sole method by which the BDC satisfies the requirement to make available managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its investment manager, directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

Small Business Administration Regulations

On April 22, 2014, the SBIC received a license from the Small Business Administration (the “SBA”) to operate as a small business investment company. The SBIC license allows us to borrow funds from the SBA against eligible investments. The Small Business Investment Company regulations currently limit the amount that is available to borrow by any SBIC to $150.0 million. There is no assurance that we will draw up to the maximum limit available under the Small Business Investment Company program.

Small business investment companies are designed to stimulate the flow of private equity capital to eligible small businesses. Under present Small Business Administration regulations, eligible small businesses include businesses that have a tangible net worth not exceeding $19.5 million and have average annual fully taxed net income not exceeding $6.5 million for the two most recent fiscal years. In addition, a small business investment company must devote 25% of its investment activity to “smaller” concerns as defined by the Small Business Administration. A smaller concern is one that has a tangible net worth not exceeding $6.0 million and has average annual fully taxed net income not exceeding $2.0 million for the two most recent fiscal years. Small Business Administration regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on such factors as the number of employees and gross sales. According to Small Business Administration regulations, small business investment companies may make long-term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services. We plan to provide long-term loans to qualifying small businesses, and in connection therewith, make equity investments.

The SBIC is periodically examined and audited by the Small Business Administration’s staff to determine its compliance with small business investment company regulations.

Taxation of the Company

We have elected to be taxed as a RIC under Subchapter M of the Code. To continue to qualify as a RIC, we must, among other things, (a) derive in each taxable year at least 90 percent of our gross income from dividends, interest (including tax-exempt interest), payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, other income (including but not limited to gain from options, futures and forward contracts) derived with respect to our business of investing in stock, securities or currencies, or net income derived from an interest in a “qualified publicly traded partnership” (a “QPTP”); and (b) diversify our holdings so that, at the end of each quarter of each taxable year (i) at least 50 percent of the market value of our total assets is represented by cash and cash items, U.S. Government securities, the securities of other RICs and other securities, with other securities limited, in respect of any one issuer, to an amount not greater than five percent of the value of our total assets and not more than 10 percent of the outstanding voting securities of such issuer (subject to the exception described below), and (ii) not more than 25 percent of the market value of our total assets is invested in the securities (other than U.S. Government securities and the securities of other regulated investment companies) (A) of any issuer, (B) of any two or more issuers that we control and that are determined to be engaged in the same business or similar or related trades or businesses, or (C) of one or more QPTPs. The Code provides for certain exceptions to the foregoing diversification requirements. We may generate certain income that might not qualify as good income for purposes of the 90% annual gross income requirement described above. We monitor our transactions to endeavor to prevent our disqualification as a RIC.

If we fail to satisfy the 90% annual gross income requirement or the asset diversification requirements discussed above in any taxable year, we may be eligible for relief provisions if the failures are due to reasonable cause and not willful neglect and if a penalty tax is paid with respect to each failure to satisfy the applicable requirements. Additionally, relief is provided for certain de minimis failures of the asset diversification requirements where we correct the failure within a specified period. If the applicable relief provisions are not available or cannot be met, all of our income would be subject to corporate-level U.S. federal income tax as described below. We cannot provide assurance that we would qualify for any such relief should we fail the 90% annual gross income requirement or the asset diversification requirements discussed above.

As a RIC, in any taxable year with respect to which we timely distribute at least 90% of the sum of our (i) investment company taxable income (which includes, among other items, dividends, interest and the excess of any net short-term capital gain over net long-term capital loss and other taxable income (other than any net capital gain), reduced by deductible expenses) determined without regard to the deduction for dividends and distributions paid and (ii) net tax exempt interest income (which is the excess of our gross tax exempt interest income over certain disallowed deductions) (the “Annual Distribution Requirement”), we (but not our stockholders) generally will not be subject to U.S. federal income tax on investment company taxable income and net capital gain (generally, net long-term capital gain in excess of short-term capital loss) that we distribute to our stockholders. We intend to distribute annually all or substantially all of such income on a timely basis. To the extent that we retain our net capital gain for investment or any investment company taxable income, we will be subject to U.S. federal income tax at the regular corporate income tax rates. We may choose to retain our net capital gains for investment or any investment company taxable income, and pay the associated federal corporate income tax, including the federal excise tax described below.

Certain amounts not distributed during a calendar year are subject to a nondeductible four percent U.S. federal excise tax payable by us. To avoid this tax, we would need to distribute (or be deemed to have distributed) during each calendar year an amount equal to the sum of:

(1) at least 98 percent of our ordinary income (not taking into account any capital gains or losses) for the calendar year;

(2) at least 98.2 percent of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made by us to use our taxable year); and

(3) certain undistributed amounts from previous years on which we paid no U.S. federal income tax.

While we intend to distribute any income and capital gains in the manner necessary to minimize imposition of the four percent federal excise tax, sufficient amounts of our taxable income and capital gains may not be distributed to avoid entirely the imposition of the tax. In that event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.

If, in any particular taxable year, we do not satisfy the Annual Distribution Requirement or otherwise were to fail to qualify as a RIC (for example, because we fail the 90% annual gross income requirement described above), and relief is not available as discussed above, all of our taxable income (including our net capital gains) will be subject to tax at regular corporate rates without any deduction for distributions to stockholders, and distributions generally will be taxable to the stockholders as ordinary dividends to the extent of our current and accumulated earnings and profits.

We may decide to be taxed as a regular corporation even if we would otherwise qualify as a RIC if we determine that treatment as a corporation for a particular year would be in our best interests.

As a RIC, we are permitted to carry forward a net capital loss realized in a taxable year beginning on or after December 23, 2010 to offset capital gain indefinitely. For net capital losses realized in taxable years beginning on or after December 23, 2010, the excess of our net short-term capital loss over our net long-term capital gain is treated as a short-term capital loss arising on the first day of our next taxable year and the excess of our net long-term capital loss over our net short-term capital gain is treated as a long-term capital loss arising on the first day of our next taxable year. If future capital gain is offset by carried forward capital losses, such future capital gain is not subject to fund-level U.S. federal income tax, regardless of whether they are distributed to stockholders. Accordingly, we do not expect to distribute any such offsetting capital gain. A RIC cannot carry back or carry forward any net operating losses.

Investment Structure

Once we determine that a prospective portfolio company is suitable for a direct investment, we work with the management of that company and its other capital providers, including senior and junior lenders, and equity holders, to structure an investment. We negotiate among these parties to agree on how our investment is expected to be structured relative to the other capital in the portfolio company’s capital structure.

Leveraged Loans

We structure our investments primarily as secured leveraged loans. Leveraged loans are generally senior debt instruments that rank ahead of subordinated debt of the portfolio company. Leveraged loans generally have the benefit of security interests on the assets of the portfolio company, which may rank ahead of, or be junior to, other security interests.

High-Yield Securities

The Company’s portfolio currently includes high-yield securities and the Company may invest in high-yield securities in the future. High-yield securities have historically experienced greater default rates than has been the case for investment grade securities and are generally rated below investment grade by one or more nationally recognized statistical rating organizations or will be unrated but of comparable credit quality to obligations rated below investment grade, and have greater credit and liquidity risk than more highly rated obligations. High-yield securities are generally unsecured and may be subordinate to other obligations of the obligor and are often issued in connection with leveraged acquisitions or recapitalizations in which the issuers incur a substantially higher amount

of indebtedness than the level at which they had previously operated. The Company’s portfolio may also include mezzanine investments which are generally unsecured and rated below investment grade. Mezzanine investments of the type in which the Company invests in are primarily privately negotiated subordinated debt securities often issued in connection with leveraged transactions, such as management buyouts, acquisitions, re-financings, recapitalizations and later stage growth capital financings, and are generally accompanied by related equity participation features such as options, warrants, preferred and common stock. In some cases, our debt investments may provide for a portion of the interest payable to be paid-in-kind interest. To the extent interest is paid-in-kind, it will be payable through the increase of the principal amount of the obligation by the amount of interest due on the then-outstanding aggregate principal amount of such obligation.

Warrants, Options and Minority Equity

In some cases, we will also receive nominally priced warrants or options to buy a minority equity interest in the portfolio company in connection with a loan. As a result, if a portfolio company appreciates in value, we may achieve additional investment return from this equity interest. We may structure such warrants to include provisions protecting our rights as a minority-interest holder, as well as a “put,” or right to sell such securities back to the issuer, upon the occurrence of specified events. In many cases, we may also seek to obtain registration rights in connection with these equity interests, which may include demand and “piggyback” registration rights.

Distressed Debt

The Company’s portfolio currently includes distressed debt investments and the Company is authorized to continue to invest in the securities and other obligations of distressed and bankrupt issuers, including debt obligations that are in covenant or payment default. As of December 31, 2020, five of the Company’s debt investments were on non-accrual status. The Company does not anticipate distressed debt to be a significant part of its investment strategy. Such investments generally trade significantly below par and are considered speculative. The repayment of defaulted obligations is subject to significant uncertainties. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest or other payments. Typically such workout or bankruptcy proceedings result in only partial recovery of cash payments or an exchange of the defaulted obligation for other debt or equity securities of the issuer or its affiliates, which may in turn be illiquid or speculative.

Opportunistic Investments

Opportunistic investments may include, but are not limited to, investments in debt securities of all kinds and at all levels of the capital structure and may include equity securities of public companies that are thinly traded, emerging market debt, structured finance vehicles such as collateralized loan obligation, or CLO, funds and debt of middle-market companies located outside the United States. We do not intend such investments to be our primary focus.

We tailor the terms of each investment to the facts and circumstances of the transaction and the prospective portfolio company, negotiating a structure that protects our rights and manages our risk while creating incentives for the portfolio company to achieve its business plan and improve its operating results. We seek to limit the downside potential of our investments by:

• requiring a total return on our investments (including both interest and potential equity appreciation) that we believe will compensate us appropriately for credit risk;

• negotiating covenants in connection with our investments that afford our portfolio companies as much flexibility in managing their businesses as possible, consistent with the preservation of our capital. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control provisions and board rights, including either observation or rights to a seat on the board of directors under some circumstances; and

• selecting investments that we believe have a very low probability of loss.

We expect to hold most of our investments to maturity or repayment, but we may sell some of our investments earlier if a liquidity event occurs, such as a sale, recapitalization or worsening of the credit quality of the portfolio company.

Available Information

We file annual, quarterly and current reports, proxy statements and all amendments to these reports and other information with the SEC. We make available free-of-charge, on or through our website at http://investors.tcpcapital.com/, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and all amendments to those filings, as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. We also make available on our website the charters for the Audit Committee and the Governance and Compensation Committee, as well as our Code of Ethics [required under the 1940 Act] and our Code of Ethics and Business Conduct required under the Sarbanes-Oxley Act (our “SOX Code of Ethics”). Further, we will provide, without charge, upon written request, a copy of the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements and all amendments to those filings as well as the committee charters, our Code of Ethics and our SOX Code of Ethics. Requests for copies should be addressed to: BlackRock TCP Capital Corp., 2951 28th Street, Suite 1000, Santa Monica, CA 90405, Attention: Investor Relations. Reports, proxy statements and other information regarding issuers that file electronically with the SEC, including our filings, are also available to the public from the SEC’s website at http://www.sec.gov.

Compliance Policies and Procedures

We and the Advisor have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws. We are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and to designate a chief compliance officer to be responsible for their administration. Charles Park currently serves as our chief compliance officer.

Proxy Voting Policies and Procedures

We have delegated our proxy voting responsibility to our investment adviser. A summary of the Proxy Voting Policies and Procedures of the Advisor are set forth below. The guidelines are reviewed periodically by the adviser and our non-interested directors, and, accordingly, are subject to change.

The Advisor is registered under the Investment Advisers Act of 1940 and has a fiduciary duty to act solely in the best interests of its clients. As part of this duty, it recognizes that it must vote securities held by its clients in a timely manner free of conflicts of interest. These policies and procedures for voting proxies for investment advisory clients are intended to comply with Section 206 of, and Rule 206(4)-6 under, the Advisers Act.

Our investment adviser votes proxies relating to our portfolio securities in the best interest of our stockholders. The Advisor reviews on a case-by-case basis each proposal submitted for a proxy vote to determine its impact on our investments. Although it generally votes against proposals that may have a negative impact on our investments, it may vote for such a proposal if there exists compelling long-term reasons to do so.

The proxy voting decisions of the Advisor are made by the senior officers who are responsible for monitoring each of our investments. To ensure that our vote is not the product of a conflict of interest, it requires that: (i) anyone involved in the decision making process disclose to the managing member any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote; and (ii) employees involved in the decision making process or vote administration are generally prohibited from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties.

You may obtain information about how we voted proxies by making a written request for proxy voting information to: BlackRock TCP Capital Corp., 2951 28th Street, Suite 1000, Santa Monica, CA 90405, Attention: Investor Relations.

Privacy Principles

We are committed to maintaining the privacy of our stockholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, we do not receive any non-public personal information relating to our stockholders, although certain non-public personal information of our stockholders may become available to us. We do not disclose any non-public personal information about our stockholders or former stockholders to anyone, except as permitted by law or as is necessary in order to service stockholder accounts (for example, to a transfer agent or third-party administrator).

We restrict access to non-public personal information about our stockholders to employees of the Advisor and its affiliates with a legitimate business need for the information. We maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of our stockholders.

Investment Management Agreement

The Company has entered into an investment management agreement with the Advisor, under which the Advisor, subject to the overall supervision of our board of directors, manages the day-to-day operations and provides investment advisory services to the Company. For providing these services, the Advisor receives a base management fee and may receive incentive compensation. Prior to August 1, 2018, SVCP was regulated as a BDC and was also party to an investment management agreement with the Advisor. On January 29, 2018, SVCP amended and restated its limited partnership agreement (the "LPA"), effective as of January 1, 2018, to convert its then existing incentive compensation structure from a profit allocation and distribution to its general partner into a fee payable to the Advisor pursuant to such investment management agreement. The amendment had no impact on the amount of the incentive compensation paid or services received by the Company. Accordingly, prior to January 1, 2018, incentive compensation was allocated to SVCP’s general partner as a distribution. In connection with the approval of the Asset Coverage Ratio Election, our Board of Directors approved, at in-person meetings held November 30, 2018 and December 28, 2018, an amended investment management agreement, which was approved by stockholders on February 8, 2019 and became effective on February 9, 2019.

Prior to August 1, 2018, the base management fee and the incentive compensation, if any, were paid by SVCP to the Advisor. The Company, therefore, indirectly bore these amounts, which are reflected in our consolidated financial statements.

Under the terms of our investment management agreement, the Advisor:

• determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes;

• identifies, evaluates and negotiates the structure of the investments we make (including performing due diligence on our prospective portfolio companies); and

• closes, monitors and administers the investments we make, including the exercise of any voting or consent rights.

The Advisor’s services under the investment management agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to us are not impaired.

Pursuant to our investment management agreement, we pay the Advisor compensation for investment advisory and management services consisting of base management compensation and a two-part incentive compensation.

Management Fee. The base management fee is calculated at an annual rate of 1.5% of our total assets (excluding cash and cash equivalents) payable quarterly in arrears; provided, however, that, effective as of February 9, 2019, the base management fee is calculated at an annual rate of 1.0% of our total assets (excluding cash and cash equivalents) that exceed an amount equal to 200% of the net asset value of the Company. For purposes of calculating the base management fee, “total assets” is determined without deduction for any borrowings or other liabilities. The base management fee is calculated based on the value of our total assets and net asset value (in each case, excluding cash and cash equivalents) at the end of the most recently completed calendar quarter. The base management fee for any partial quarter is appropriately prorated.

Incentive Compensation. We also pay incentive compensation to the Advisor pursuant to the investment management agreement. Prior to January 1, 2018, incentive compensation was allocated to SVCP's general partner as a distribution under the LPA. Under the then-existing investment management agreements and the LPA (pursuant to which incentive compensation was distributed to SVCP’s general partner prior to January 1, 2018), no incentive compensation was incurred until after January 1, 2013.

Incentive Compensation pursuant to investment management agreements prior to February 9, 2019

Beginning January 1, 2013, the incentive compensation equaled the sum of (1) 20% of all ordinary income since that date and (2) 20% of all net realized capital gains (net of any net unrealized capital depreciation) since that date, with each component being subject to a total return requirement of 8% of contributed common equity annually. Through December 31, 2017, the incentive compensation was an equity allocation to SVCP’s general partner under the LPA. Effective as of January 1, 2018, the LPA was amended to remove the incentive compensation distribution provisions therein, and the incentive compensation became payable as a fee to the Advisor pursuant to the then-existing investment management agreements. The amendment had no impact on the amount of the incentive compensation paid or services received by the Company.

The incentive compensation had two components, ordinary income and capital gains. Each component was payable or distributable quarterly in arrears (or upon termination of the Advisor as the investment manager or SVCP’s general partner as its general partner, as of the termination date) beginning January 1, 2013 and calculated as follows:

Each of the two components of incentive compensation was separately subject to a total return limitation. Thus, notwithstanding the following provisions, we were not be obligated to pay or distribute any ordinary income incentive compensation or any capital gains incentive compensation if our cumulative total return did not exceed an 8% annual return on daily weighted average contributed common equity. If our cumulative annual total return was above 8%, the total cumulative incentive compensation we paid was not more than 20% of our cumulative total return, or, if lower, the amount of our cumulative total return that exceeded the 8% annual rate.

Subject to the above limitation, the ordinary income component was the amount, if positive, equal to 20% of the cumulative ordinary income before incentive compensation, less cumulative ordinary income incentive compensation previously paid or distributed.

Subject to the above limitation, the capital gains component was the amount, if positive, equal to 20% of the cumulative realized capital gains (computed net of cumulative realized losses and cumulative net unrealized capital depreciation), less cumulative capital gains incentive compensation previously paid or distributed. For assets held on January 1, 2013, capital gain, loss and depreciation are measured on an asset by asset basis against the value as of December 31, 2012. The capital gains component was paid or distributed in full prior to payment or distribution of the ordinary income component.

For purposes of the foregoing computations and the total return limitation, the following definitions apply:

•“cumulative” means amounts for the period commencing January 1, 2013 and ending as of the applicable calculation date.

•“contributed common equity” means the value of net assets attributable to our common stock as of December 31, 2012 plus the proceeds to us of all issuances of common stock less (A) offering costs of any of our securities or leverage facilities, (B) all distributions by us representing a return of capital and (C) the total cost of all repurchases of our common stock by us, in each case after December 31, 2012 and through the end of the preceding calendar quarter in question, in each case as determined on an accrual and consolidated basis.

•“ordinary income before incentive compensation” means our interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that we receive from portfolio companies) during the period, (i) minus our operating expenses during the period (including the base management fee, expenses payable under the administration agreement, any interest expense and any dividends paid on any issued and outstanding preferred stock), (ii) plus increases and minus decreases in net assets not treated as components of income, operating expense, gain, loss, appreciation or depreciation and not treated as contributions or distributions in respect of common equity, and (iii) without reduction for any incentive compensation and any organization or offering costs, in each case determined on an accrual and consolidated basis.

•“total return” means the amount equal to the combination of ordinary income before incentive compensation, realized capital gains and losses and unrealized capital appreciation and depreciation of the Company for the period, in each case determined on an accrual and consolidated basis.

If our total return did not exceed the total return limitation, the limitation would not have had the effect of eliminating the possibility of paying such incentive compensation, but rather would have postponed any incentive compensation until our cumulative annual total return exceeded the 8% threshold. The nature of the total return limitation may have also made it easier for the Advisor to earn incentive compensation in higher interest rate environments or if our net asset value had increased.

Total Return Limitation

(based on cumulative annual total return)

Percentage of ordinary income and net realized capital gain separately payable at various levels of total return.

The financial highlights in the notes to our financial statements for the relevant periods include a calculation of total return based on the change in the market value of our shares. The financial highlights in the notes to our financial statements for the relevant periods also include a calculation of total return based on the change in our net asset value from period to period. The total return limitation for purposes of the incentive compensation calculations was based on the stated elements of return: ordinary income before incentive compensation, realized capital gain and loss and unrealized capital appreciation and depreciation. It differs from the total return based on the market value or net asset value of our shares in that it was a cumulative measurement that is compared to our daily weighted-average contributed common equity rather than a periodic measurement that is compared to our net asset value or market value, and in that it excludes incentive compensation.

Incentive Compensation pursuant to the current investment management agreement

Under the current investment management agreement, dated February 9, 2019, the incentive compensation equals the sum of (1) 20% of all ordinary income since January 1, 2013 through February 8, 2019 and 17.5% thereafter and (2) 20% of all net realized capital gains (net of any net unrealized capital depreciation) since January 1, 2013 through February 8, 2019 and 17.5% thereafter, less ordinary income incentive compensation and capital gains incentive compensation previously paid. However, incentive compensation will only be paid to the extent the cumulative total return of the Company after incentive compensation and including such payment would equal or exceed a 7% annual return on daily weighted average contributed common equity.

Total Return Limitation

(based on cumulative annual total return)

Percentage of ordinary income and net realized capital gain separately payable at various levels of total return.

The incentive compensation is payable quarterly in arrears (or upon termination of the Advisor as the investment manager, as of the termination date).

For assets held on January 1, 2013, capital gain, loss and depreciation are measured on an asset by asset basis against the value as of December 31, 2012. The capital gains component is paid or distributed in full prior to payment or distribution of the ordinary income component.

For purposes of the foregoing computations, the following definitions apply:

• “cumulative” means amounts for the period commencing January 1, 2013 and ending as of the applicable calculation date.

• “contributed common equity” means the value of net assets attributable to our common stock as of December 31, 2012 plus the proceeds to us of all issuances of common stock less (A) offering costs of any of our securities or leverage facilities, (B) all distributions by us representing a return of capital and (C) the total cost of all repurchases of our common stock by us, in each case after December 31, 2012 and through the end of the preceding calendar quarter in question, in each case as determined on an accrual and consolidated basis.

• “ordinary income before incentive compensation” means our interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that we receive from portfolio companies) during the period, (i) minus our operating expenses during the period (including the base management fee, expenses payable under the administration agreement, any interest expense and any dividends paid on any issued and outstanding preferred stock), (ii) plus increases and minus decreases in net assets not treated as components of income, operating expense, gain, loss, appreciation or depreciation and not treated as contributions or distributions in respect of common equity, and (iii) without reduction for any incentive compensation and any organization or offering costs, in each case determined on an accrual and consolidated basis.

• “total return” means the amount equal to the combination of ordinary income before incentive compensation, realized capital gains and losses and unrealized capital appreciation and depreciation of the Company

and any other items affecting net asset value per share of the Company for the period (other than incentive compensation), in each case determined on an accrual and consolidated basis.

The financial highlights in the notes to our financial statements include a calculation of total return based on the change in the market value of our shares. The financial highlights in the notes to our financial statements also include a calculation of total return based on the change in our net asset value from period to period. The total return hurdle for purposes of the incentive compensation calculations is based on the stated elements of return as defined above, and differs from the total return based on the market value or net asset value of our shares in that it is a cumulative measurement that is compared to our daily weighted-average contributed common equity rather than a periodic measurement that is compared to our net asset value or market value, and in that it excludes incentive compensation.

Examples of Incentive Compensation Calculation

Example 1: Income Portion of Incentive Compensation:

Assumptions

• Total return hurdle(1) = 7%

Alternative 1

a.Additional Assumptions

i.cumulative gross ordinary income (including interest, dividends, fees, etc.) = 11.5%

ii.cumulative ordinary income before incentive compensation (gross ordinary income - (management fee + other expenses)) = 9%

iii.cumulative annual total return = 6%

b. Cumulative total return does not exceed total return hurdle, therefore there is no income incentive compensation.

Alternative 2

a.Additional Assumptions

i.cumulative gross ordinary income (including interest, dividends, fees, etc.) = 10%

ii.cumulative ordinary income before incentive compensation (gross ordinary income - (management fee + other expenses)) = 7.5%

iii.cumulative annual total return = 8.5%

b. Tentative incentive compensation = 17.5% x ordinary income before incentive compensation

= 17.5% x 7.5%

= 1.3%

c. Total return after incentive compensation = 8.5% - 1.3%

= 7.2%

d. Cumulative ordinary income before incentive compensation is positive and the cumulative total return after incentive compensation exceeds the total return hurdle, therefore incentive compensation is fully payable.

Alternative 3

a.Additional Assumptions

i.cumulative gross ordinary income (including interest, dividends, fees, etc.) = 10%

ii.cumulative ordinary income before incentive compensation (gross ordinary income — (management fee + other expenses)) = 7.5%

iii.cumulative annual total return = 8.0%

(1) Represents 7.0% annualized total return hurdle.

•Management fee = 1.5%

Represents 1.5% annualized management fee, assuming no liabilities and no leverage above 1.0x debt to equity.

•Other expenses (legal, accounting, custodian, transfer agent, etc.) = 1%

Excludes organizational and offering costs.

b. Tentative incentive compensation = 17.5% x ordinary income before incentive compensation

= 17.5% x 7.5%

= 1.3%

c. Total return after tentative incentive compensation = 8.0% - 1.3%

= 6.7%

d. Cumulative ordinary income before incentive compensation is positive and the total return hurdle is less than total return but greater than total return after tentative incentive compensation, therefore incentive compensation is partially payable and = Total return – total return hurdle

= 8.0% - 7.0%

= 1.0%

Example 2: Capital Gains Portion of Incentive Compensation:

Alternative 1:

a.Assumptions

i.Year 1: $20 million investment made in Company A (“Investment A”), and $30 million investment made in Company B (“Investment B”).

ii.Year 2: Investment A sold for $50 million and fair market value, or fair market value (“FMV”), of Investment B determined to be $32 million. Cumulative annual total return of 40%.

iii.Year 3: FMV of Investment B determined to be $25 million. Cumulative annual total return of 15%.

iv.Year 4: Investment B sold for $31 million. Cumulative annual total return of 10%.

b. The capital gains portion of the incentive compensation would be:

i.Year 1: None.

ii.Year 2: Capital gains incentive compensation of $5.25 million ($5.25 million = $30 million realized capital gains on sale of Investment A multiplied by 17.5% and total return hurdle satisfied).

iii.Year 3: None; no realized capital gains.

iv.Year 4: Capital gains incentive compensation of $0.175 million ($31 million cumulative realized capital gains multiplied by 17.5%, less $5.25 million of capital gains incentive compensation paid in year 2 and total return hurdle satisfied).

Alternative 2

a.Assumptions

i.Year 1: $20 million investment made in Company A (“Investment A”), $30 million investment made in Company B (“Investment B”) and $25 million investment made in Company C (“Investment C”).

ii.Year 2: Investment A sold for $50 million, FMV of Investment B determined to be $25 million and FMV of Investment C determined to be $25 million. Cumulative annual total return of 15%.

iii.Year 3: FMV of Investment B determined to be $27 million and Investment C sold for $30 million. Cumulative annual total return of 6%.

iv.Year 4: FMV of Investment B determined to be $35 million. Cumulative annual total return of 20%.

v.Year 5: Investment B sold for $40 million. Cumulative annual total return of 20%.

b. The capital gains portion of the incentive compensation would be:

i.Year 1: None.

ii.Year 2: Capital gains incentive compensation of $4.375 million; 17.5% multiplied by $25 million ($30 million realized capital gains on Investment A less $5 million unrealized capital depreciation on Investment B, and the total return hurdle is satisfied).

iii.Year 3: None as the total return hurdle is not satisfied.

iv.Year 4: Capital gains incentive compensation of $1.75 million ($35 million cumulative realized capital gains (including $5 million of realized capital gains from year 3 at a time when the total return hurdle was not satisfied and no cumulative unrealized capital depreciation) multiplied by 17.5%, less $4.375 million capital gains incentive compensation paid in year 2, and the total return hurdle is satisfied).

v.Year 5: Capital gains incentive compensation of $1.75 million ($45 million cumulative realized capital gains multiplied by 17.5%, less $6.125 million in capital gains incentive compensation paid in years 2 and 4, and the total return hurdle is satisfied).

Payment of our expenses

All investment professionals and staff of the Advisor, when and to the extent engaged in providing investment advisory and management services, and the compensation and routine overhead expenses of such personnel

allocable to such services (including health insurance, 401(k) plan benefits, payroll taxes and other compensation related matters), are provided and paid for by the Advisor. We bear all other costs and expenses of our operations and transactions, including those relating to:

• our organization;

• calculating our net asset value and net asset value per share (including the cost and expenses of any independent valuation firm);

• expenses, including travel expense, incurred by the Advisor or payable to third parties in performing due diligence on prospective portfolio companies, monitoring our investments and, if necessary, enforcing our rights;

• interest payable on debt, if any, incurred to finance our investments;

• the costs of all future offerings of common stock and other securities, if any;

• the base management fee and any incentive compensation;

• distributions on our shares;

• administration fees payable under our administration agreement;

• transfer agent and custody fees and expenses;

• the allocated costs incurred by our Administrator in providing managerial assistance to those portfolio companies that request it;

• amounts payable to third parties relating to, or associated with, evaluating, making and disposing of investments;

• brokerage fees and commissions;

• registration fees;

• listing fees;

• taxes;

• director fees and expenses;

• costs of preparing and filing reports or other documents with the SEC;

• the costs of any reports, proxy statements or other notices to our stockholders, including printing costs;

• costs of holding stockholder meetings;

• our fidelity bond;

• directors and officers/errors and omissions liability insurance, and any other insurance premiums;

• litigation, indemnification and other non-recurring or extraordinary expenses;

• direct costs and expenses of administration and operation, including audit and legal costs;

• dues, fees and charges of any trade association of which we are a member; and

• all other expenses reasonably incurred by us or the Administrator in connection with administering our business, such as the allocable portion of overhead under our administration agreement, including rent and other allocable portions of the cost of certain of our officers and their respective staffs.

From time to time, the Advisor may pay amounts owed by us to third party providers of goods or services. We will subsequently reimburse the Advisor for such amounts paid on our behalf.

Limitation of liability and indemnification

The investment management agreement provides that the Advisor and its officers, directors, employees and affiliates are not liable to us or any of our stockholders for any act or omission by it or its employees in the supervision or management of our investment activities or for any loss sustained by us or our stockholders, except that the foregoing exculpation does not extend to any act or omission constituting willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations under the investment management agreement. The investment management agreement also provides for indemnification by us of the Advisor’s members, directors, officers, employees, agents and control persons for liabilities incurred by it in connection with their services to us, subject to the same limitations and to certain conditions.

Board and stockholder approval of the investment management agreement

Our board of directors held in-person meetings on November 30, 2018 and December 28, 2018, in order to consider and reapprove our investment management agreement and stockholders approved the investment management agreement on February 8, 2019 to be effective on February 9, 2019. In its consideration of the investment management agreement, the board of directors focused on information it had received relating to, among other things: (a) the nature, quality and extent of the advisory and other services to be provided to us by the Advisor; (b) comparative data with respect to advisory fees or similar expenses paid by other business development companies with similar investment objectives; (c) our financial performance, operating expenses and expense ratio compared to business development companies with similar investment objectives; (d) any existing and potential sources of indirect income to the Advisor from its relationships with us and the profitability of those relationships; (e) information about the services performed and the personnel performing such services under the investment management agreement; (f) the organizational capability and financial condition of the Advisor and its affiliates; (g) the Advisor’s practices regarding the selection and compensation of brokers that execute our portfolio transactions and the brokers’ provision of brokerage and research services to our investment advisor; and (h) the possibility of obtaining similar services from other third party service providers or through an internally managed structure.

Based on the information reviewed and the discussions, the board of directors, including a majority of the non-interested directors, concluded that the investment management fee rates are reasonable in relation to the services to be provided.

Duration and termination

The investment management agreement will remain in effect for a period of two years from the date of stockholder approval and thereafter will remain in effect from year to year if approved annually by our board of directors or by the affirmative vote of the holders of a majority of our outstanding voting securities, including, in either case, approval by a majority of our directors who are not interested persons. The investment management agreement will automatically terminate in the event of its assignment. The investment management agreement may be terminated by either party without penalty upon not less than 60 days written notice to the other. Any termination by us must be authorized either by our board of directors or by vote of our stockholders. See “Risk Factors — Risks related to our business — We are dependent upon senior management personnel of the Advisor for our future success, and if the Advisor is unable to retain qualified personnel or if the Advisor loses any member of its senior management team, our ability to achieve our investment objective could be significantly harmed.”

Administration Agreement

We have entered into an administration agreement with the Administrator, which we refer to as the administration agreement, under which the Administrator provides administrative services to us. The Administrator provides services including, but not limited to, the arrangement for the services of, and the overseeing of, custodians, depositories, transfer agents, dividend disbursing agents, other stockholder servicing agents, accountants, attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers, banks, stockholders and such other persons in any such other capacity deemed to be necessary or desirable. The Administrator also makes reports to the board of its performance of obligations under the administration agreement and furnishes advice and recommendations with respect to such other aspects of our business and affairs that we determine to be desirable. The Administrator is responsible for our financial and other records that are required to be maintained and prepares all reports and other materials required by any agreement or to be filed with the Securities and Exchange Commission or any other regulatory authority, including reports on Forms 8-K, 10-Q, 10-K and periodic reports to stockholders, determining the amounts available for distribution as dividends and distributions to be paid by us to our stockholders, reviewing and implementing any share purchase programs authorized by the board, maintaining or overseeing the maintenance of our books and records as required under the 1940 Act, and maintaining (or overseeing maintenance by other persons) such other books and records required by law or for our proper operation. For providing these services, facilities and personnel, we reimburse the Administrator for expenses incurred by the Administrator in performing its obligations under the administration agreement, including our allocable portion of overhead under the administration agreement and the cost of certain of our officers and the Administrator’s administrative staff and providing, at our request and on our behalf, significant managerial assistance to our portfolio companies to which we are required to provide such assistance. From time to time, the Administrator may pay amounts owed by us to third-

party providers of goods or services. We subsequently reimburse the Administrator for such amounts paid on our behalf.

Leverage

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”), $140.0 million in convertible senior unsecured notes issued by the Company maturing in 2022 (the “2022 Convertible Notes”), $175.0 million in senior unsecured notes issued by the Company maturing in 2022 (the “2022 Notes”), $250.0 million in senior unsecured notes issued by the Company maturing in 2024 (the “2024 Notes”), $175.0 million in senior unsecured notes issued by the Company maturing in 2026 (the "2026 Notes") and $150.0 million in committed leverage from the SBA (the “SBA Program” and, together with the Operating Facility, Funding Facility II, the 2022 Convertible Notes, the 2022 Notes and the 2024 Notes, the “Leverage Program”). Prior to being replaced by Funding Facility II on August 4, 2020, leverage included $300.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding (“Funding Facility I”). Prior to its maturity on December 15, 2019, leverage also included convertible senior unsecured notes due December 2019 issued by the Company (the “2019 Convertible Notes”).

The Operating Facility matures on May 6, 2024, subject to extension by the lenders at the request of SVCP, and bears interest at a rate of LIBOR plus 2.00%. In addition to amounts due on outstanding debt, the Operating Facility accrues commitment fees of 0.50% per annum on the unused portion of the facility, or 2.25% per annum on the unused portion that is greater than 60% of the total facility. The Operating Facility includes a $100 million accordion feature which allows for expansion of the facility to up to $400.0 million subject to consent from the lender and other customary conditions.

The Funding Facility II matures on August 4, 2025, subject to extension by the lender at the request of TCPC Funding II, and contains an accordion feature which allows for expansion of the facility up to $250.0 million subject to consent from the lender and other customary conditions. Borrowings under Funding Facility II bear interest at a rate of LIBOR plus 2.00% per annum, subject to certain funding requirements, plus a 0.35% fee on drawn amounts and an administrative fee of 0.15% per annum on the facility. The facility also accrues commitment fees of 0.35% per annum on the unused portion of the facility.

On June 11, 2014, the Company issued $108.0 million of convertible senior unsecured notes that matured on December 15, 2019. The 2019 Convertible Notes were general unsecured obligations of the Company, and ranked structurally junior to the SVCP Facility, the TCPC Funding Facility and the SBA Debentures, and ranked pari passu with the 2022 Convertible Notes, 2024 Notes and 2022 Notes. The Company did not have the right to redeem the 2019 Convertible Notes prior to its maturity on December 15, 2019. The 2019 Convertible Notes bore interest at an annual rate of 5.25%, paid semi-annually.

On August 4, 2017, the Company issued $125.0 million of unsecured notes that mature on August 11, 2022, unless previously repurchased or redeemed in accordance with their terms. On November 3, 2017, the Company issued an additional $50.0 million of unsecured notes as a follow-on issuance of the 2022 Notes for a total outstanding aggregate principal amount of $175.0 million. The 2022 Notes are general unsecured obligations of the Company, and rank structurally junior to the Operating Facility, the Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes, 2024 Notes and 2026 Notes. The 2022 Notes may be redeemed in whole or part at the Company's option at a redemption price equal to par plus a "make whole" premium,

as determined pursuant to the indenture governing the 2022 Notes, and any accrued and unpaid interest. The 2022 Notes bear interest at an annual rate of 4.125%, payable semi-annually.

On August 23, 2019, the Company issued $150.0 million of unsecured notes that mature on August 23, 2024, unless previously repurchased or redeemed in accordance with their terms. On November 26, 2019, the Company issued an additional $50.0 million of unsecured notes as a follow-on issuance of the 2024 Notes and on October 2, 2020, the Company issued an additional $50.0 million of the 2024 Notes for a total outstanding aggregate principal amount of $250.0 million. The 2024 Notes are general unsecured obligations of the Company and rank structurally junior to the Operating Facility, Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes, 2022 Notes and 2026 Notes. The 2024 Notes may be redeemed in whole or part at the Company's option at a redemption price equal to par plus a "make whole" premium, as determined pursuant to the indenture governing the 2024 Notes, and any accrued and unpaid interest. The 2024 Notes bear interest at an annual rate of 3.900%, payable semi-annually.

On February 9, 2021, the Company issued $175.0 million of unsecured notes that mature on February 6, 2026, unless previously repurchased or redeemed in accordance with their terms. The 2026 Notes are general unsecured obligations of the Company and rank structurally junior to the Operating Facility, Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes, 2022 Notes and 2024 Notes. The 2026 Notes may be redeemed in whole or part at the Company's option at a redemption price equal to par plus a "make whole" premium, as determined pursuant to the indenture governing the 2026 Notes, and any accrued and unpaid interest. The 2026 Notes bear interest at an annual rate of 2.850%, payable semi-annually.

The SBIC is able to issue up to $150.0 million in debt under the SBA Debentures, subject to funded regulatory capital and other customary regulatory requirements. SVCP has committed $79.0 million of regulatory capital to the SBIC, all of which had been funded at December 31, 2020. Debt issued under the SBA Debentures is non-recourse and may be prepaid at any time without penalty. The interest rate on such debt is fixed at the time of issuance at a market-driven spread over 10-year U.S. Treasury Notes.

The Leverage Program is subject to certain financial or other covenants. As of December 31, 2020, we were in full compliance with such covenants.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example:

• Pursuant to Rule 13a-14 of the 1934 Act, our Chief Executive Officer and Chief Financial Officer must certify the accuracy of the financial statements contained in our periodic reports;

• Pursuant to Item 307 of Regulation S-K, our periodic reports must disclose our conclusions about the effectiveness of our disclosure controls and procedures;

• Pursuant to Rule 13a-15 of the 1934 Act, our management must prepare a report regarding its assessment of our internal control over financial reporting; and

• Pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the 1934 Act, our periodic reports must disclose whether there were significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.

Item 1A. Risk Factors

An investment in our securities involves certain risks relating to our structure and investment objectives. The risks set forth below are not the only risks we face, and we face other risks which we have not yet identified, which we do not currently deem material or which are not yet predictable. If any of the following risks occur, our business, financial condition and results of operations could be materially adversely affected. In such case, our net asset value and the trading price of our common stock could decline, and you may lose all or part of your investment.

Risks Related to Our Business

Events outside of our control, including public health crises, may negatively affect the results of our operations.

As of the filing date of this Annual Report, there is an outbreak of a highly contagious form of a novel coronavirus known as “COVID-19.” COVID-19 has been declared a pandemic by the World Health Organization and, in response to the outbreak, the U.S. Health and Human Services Secretary has declared a public health emergency in the United States. COVID-19 has had a devastating impact on the global economy, including the U.S. economy, and has resulted in a global economic recession.

Many states, including those in which we and our portfolio companies operate, have issued orders requiring the closure of non-essential businesses and/or requiring residents to stay at home. The COVID-19 pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns, cancellations of events and travel, significant reductions in demand for certain goods and services, reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both globally and in the United States. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter. While several countries, as well as certain states, counties and cities in the United States, began to relax the early public health restrictions with a view to partially or fully reopening their economies, many cities, both globally and in the United States, have since experienced a surge in the reported number of cases and hospitalizations related to the COVID-19 pandemic. This increase in cases has led to the re-introduction of restrictions and business shutdowns in certain states, counties and cities in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Additionally, in December 2020, the U.S. Food and Drug Administration authorized vaccines produced by Pfizer-BioNTech and Moderna for emergency use. However, it remains unclear how quickly the vaccines will be distributed nationwide and globally or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. The delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and our business and operations, as well as the business and operations of our portfolio companies, could be materially adversely affected by a prolonged recession in the United States and other major markets. Potential consequences of the current unprecedented measures taken in response to the spread of COVID-19, and current market disruptions and volatility that may impact our business include, but are not limited to:

•sudden, unexpected and/or severe declines in the market price of our securities or net asset value;

•inability of the Company to accurately or reliably value its portfolio;

•inability of the Company to comply with certain asset coverage ratios that would prevent the Company from paying dividends to our stockholders and that could result breaches of covenants or events of default under our credit agreement or debt indentures;

•inability of the Company to pay any dividends and distributions or service its debt;

•inability of the Company to maintain its status as a RIC under the Code;

•increased risk of default or bankruptcy by the companies in which we invest;

•increased risk of companies in which we invest being unable to weather an extended cessation of normal economic activity and thereby impairing their ability to continue functioning as a going concern;

•reduced economic demand resulting from changes in consumer behavior, mass employee layoffs or furloughs in response to governmental action taken to slow the spread of COVID-19, which could impact the continued viability of the companies in which we invest;

•companies in which we invest being disproportionally impacted by governmental action aimed at slowing the spread of COVID-19 or mitigating its economic effects;

•limited availability of new investment opportunities;

•inability for us to replace our existing leverage when it becomes due or replace it on terms as favorable as our existing leverage;

•a reduction in interest rates, including interest rates based on LIBOR and similar benchmarks, which may adversely impact our ability to lend money at attractive rates; and

•general threats to the Company’s ability to continue investment operations and to operate successfully as a business development company.

The COVID-19 pandemic (including the preventative measures taken in response thereto) has to date (i) created significant business disruption issues for certain of our portfolio companies, and (ii) materially and adversely impacted the value and performance of certain of our portfolio companies. The COVID-19 pandemic is continuing as of the filing date of this Annual Report, and its extended duration may have further adverse impacts on our portfolio companies after December 31, 2020, including for the reasons described below. Although on March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which contains provisions intended to mitigate the adverse economic effects of the COVID-19 pandemic, it is uncertain whether, or how much, our portfolio companies will be able to benefit from the CARES Act or any other subsequent legislation intended to provide financial relief or assistance. As a result of this disruption and the pressures on their liquidity, certain of our portfolio companies have been, or may continue to be, incentivized to draw on most, if not all, of the unfunded portion of any revolving or delayed draw term loans made by us, subject to availability under the terms of such loans.

The effects described above on our portfolio companies could impact their ability to make payments on their loans on a timely basis and may impact their ability to continue making their loan payments on a timely basis or meeting their loan covenants. The inability of portfolio companies to make timely payments or meet loan covenants may in the future require us to undertake amendment actions with respect to our investments or to restructure our investments, which may include the need for us to make additional investments in our portfolio companies (including debt or equity investments) beyond any existing commitments, exchange debt for equity, or change the payment terms of our investments to permit a portfolio company to pay a portion of its interest through payment-in-kind, which would defer the cash collection of such interest and add it to the principal balance, which would generally be due upon repayment of the outstanding principal.

The COVID-19 pandemic has adversely impacted the fair value of our investments as of December 31, 2020, and the values presently assigned may differ materially from the values that we may ultimately realize with respect to our investments. The impact of the COVID-19 pandemic may not yet be fully reflected in the valuation of our investments as our valuations, and particularly valuations of private investments and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information that is often historical. As a result, our valuations at December 31, 2020 may not show the complete or continuing impact of the COVID-19 pandemic and the resulting measures taken in response thereto. In addition, write downs in the value of our investments have reduced, and any additional write downs may further reduce, our net asset value (and, as a result, our asset coverage calculation). Accordingly, we may continue to incur additional net unrealized losses or may incur realized losses after December 31, 2020, which could have a material adverse effect on our business, financial condition and results of operations.

The volatility and disruption to the global economy from the COVID-19 pandemic is impacting the pace of our investment activity, which could adversely impact our results of operations. This volatility and disruption has also increased spreads in the private debt capital markets.

In response to the COVID-19 pandemic, the Advisor instituted a work from home policy. Although certain employees are currently allowed to return to their offices in certain circumstances, subject to health and safety

protocols, it is expected that most employees will continue to work remotely for the foreseeable future. Extended periods of remote working could strain our technology resources and introduce operational risks, including heightened cybersecurity risk. Remote working environments may be less secure and more susceptible to hacking attacks, including phishing and social engineering attempts that seek to exploit the COVID-19 pandemic.

Despite actions of the U.S. federal government and foreign governments, the uncertainty surrounding the COVID-19 pandemic and other factors has contributed to significant volatility and declines in the global public equity markets and global debt capital markets, including the market price of shares of our common stock and the trading prices of our issued debt securities. Shares of our common stock are trading below our net asset value as of the filing date of this Annual Report. Market conditions and our trading discount to net asset value may make it difficult for us to raise equity capital because, even though we have approval from our stockholders to sell shares of our common stock at a price below net asset value, we must first obtain approval for such sales from our independent directors and the approval we have obtained from our stockholders for such sales is only effective until May 27, 2021, unless approved again by our stockholders for another 12-month period. Absent such stockholder and independent director approval, subject to some limited exceptions, as a BDC we are generally not able to sell shares of our common stock at a price less than net asset value. Moreover, these market conditions may make it difficult to access or obtain new indebtedness with similar terms to our existing indebtedness or otherwise have a negative effect on our cost of capital. See “–Risks Relating to Our Business-Capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect debt and equity capital markets in the United States and abroad, which may have a negative impact on our business and operations.”

It is virtually impossible to determine the ultimate impact of COVID-19 at this time. Further, the extent and strength of any economic recovery after the COVID-19 pandemic abates, including following any “second wave” or other intensifying of the pandemic, is uncertain and subject to various factors and conditions. Accordingly, an investment in the Company is subject to an elevated degree of risk as compared to other market environments.

Capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect debt and equity capital markets in the United States and abroad, which may have a negative impact on our business and operations.

From time to time, capital markets may experience periods of disruption and instability, which may be evidenced by a lack of liquidity in debt capital markets, write-offs in the financial services sector, re-pricing of credit risk and failure of certain major financial institutions. An example of such disruption and instability occurred between 2008 and 2009. During that period, despite actions of the U.S. federal government and foreign governments, such disruption and instability contributed to worsening general economic conditions that materially and adversely impacted the broader financial and credit markets and reduced the availability of debt and equity capital for the market as a whole and financial services firms in particular. While capital markets have improved in recent years, these conditions could deteriorate again and global financial markets could experience significant volatility. During such market disruptions, we may have difficulty raising debt or equity capital especially as a result of regulatory constraints. There can be no assurance that adverse market conditions will not repeat themselves or worsen in the future.

Equity capital may be difficult to raise because, subject to some limited exceptions, as a BDC, we are generally not able to issue additional shares of common stock at a price less than net asset value without first obtaining approval for such issuance from our stockholders and our independent directors. We generally seek approval from our stockholders so that we have the flexibility to issue up to 25% of our then outstanding shares of our common stock immediately prior to any such sale at a price below net asset value. Pursuant to approval granted at our annual meeting of stockholders held on May 27, 2020, we currently are permitted to sell or otherwise issue shares of our common stock at a price below net asset value, subject to certain limitations and determinations that must be made by our board of directors. Such stockholder approval expires on May 27, 2021. In addition, our ability to incur indebtedness (including by issuing preferred stock) is limited by applicable regulations such that our asset coverage ratio, as calculated in accordance with the 1940 Act, must equal at least 150% immediately after each time we incur indebtedness. The debt capital that will be available to us in the future, if at all, may be at a higher cost and on less

favorable terms and conditions than our current leverage. Any inability to raise capital could have a negative effect on our business, financial condition and results of operations.

Market conditions may in the future make it difficult to extend the maturity of or refinance our existing indebtedness and any failure to do so could have a material adverse effect on our business. The re-appearance of market conditions similar to those experienced from 2008 through 2009 for any substantial length of time could make it difficult to extend the maturity of or refinance our existing indebtedness or obtain new indebtedness with similar terms and any failure to do so could have a material adverse effect on our business. The debt capital that will be available to us in the future, if at all, may be at a higher cost and on less favorable terms and conditions than what we currently experience. Further, if we are unable to raise or refinance debt, then our equity investors may not benefit from the potential for increased returns on equity resulting from leverage and we may be limited in our ability to make new commitments or to fund existing commitments to our portfolio companies.

The illiquidity of our investments may make it difficult for us to sell such investments if required. As a result, we may realize significantly less than the value at which we have recorded our investments. In addition, significant changes in the capital markets, including the disruption and volatility, have had, and may in the future have, a negative effect on the valuations of our investments and on the potential for liquidity events involving our investments. An inability to raise capital, and any required sale of our investments for liquidity purposes, could have a material adverse impact on our business, financial condition and results of operations.

Price declines and illiquidity in the corporate debt markets have adversely affected, and may in the future adversely affect, the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation.

As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by or under the direction of our board of directors. Decreases in the market values or fair values of our investments are recorded as unrealized depreciation, which reduces our net asset value. Depending on market conditions, we could incur substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse impact on our business, financial condition and results of operations.

Changes in legal, tax and regulatory regimes could negatively impact our business, financial condition and earnings.

The global financial crisis of 2007-2009 led the U.S. Government and the Federal Reserve, as well as certain foreign governments, to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that experienced extreme volatility. The withdrawal of Federal Reserve or other U.S. or non-U.S. governmental support could negatively affect financial markets generally and reduce the value and liquidity of certain securities. Additionally, with continued economic recovery and the cessation of certain market support activities, we may face a heightened level of interest rate risk as a result of a rise or increased volatility in interest rates.

Changes enacted by the current presidential administration could significantly impact the regulation of financial markets in United States. Areas subject to potential change, amendment or repeal include trade and foreign policy, corporate tax rates, energy and infrastructure policies, the environment and sustainability, criminal and social justice initiatives, immigration, healthcare and the oversight of certain federal financial regulatory agencies and the Federal Reserve. Certain of these changes can, and have, been effectuated through executive order. For example, the current administration has taken steps to address the COVID-19 pandemic, rejoin the Paris climate accord of 2015, cancel the Keystone XL pipeline and change immigration enforcement priorities. Other potential changes that could be pursued by the current presidential administration could include an increase in the corporate income tax rate; changes to regulatory enforcement priorities; and spending on clean energy and infrastructure. It is not possible to predict which, if any, of these actions will be taken or, if taken, their effect on the economy, securities markets or the financial stability of the United States. The Company may be affected by governmental action in ways that are not

foreseeable, and there is a possibility that such actions could have a significant adverse effect on the Company and its ability to achieve its investment objective.

Additional risks arising from the differences in expressed policy preferences among the various constituencies in the branches of the U.S. government has led in the past, and may lead in the future, to short-term or prolonged policy impasses, which could, and has, resulted in shutdowns of the U.S. federal government. U.S. federal government shutdowns, especially prolonged shutdowns, could have a significant adverse impact on the economy in general and could impair the ability of issuers to raise capital in the securities markets. Any of these effects could have a material adverse effect on our business, financial condition and results of operations.

Market disruptions and other geopolitical or macroeconomic events could create market volatility that negatively impact our business, financial condition and earnings.

Periods of market volatility remain, and may continue to occur in the future, in response to various political, social and economic events both within and outside of the United States. These conditions have resulted in, and in many cases continue to result in, greater price volatility, less liquidity, widening credit spreads and a lack of price transparency, with many securities remaining illiquid and of uncertain value. Such market conditions may adversely affect the Fund, including by making valuation of some of the Fund’s securities uncertain and/or result in sudden and significant valuation increases or declines in the Fund’s holdings. If there is a significant decline in the value of the Fund’s portfolio, this may impact the asset coverage levels for the Fund’s outstanding leverage.

Risks resulting from any future debt or other economic crisis could also have a detrimental impact on the global economic recovery, the financial condition of financial institutions and our business, financial condition and results of operation. Market and economic disruptions have affected, and may in the future affect, consumer confidence levels and spending, personal bankruptcy rates, levels of incurrence and default on consumer debt and home prices, among other factors. To the extent uncertainty regarding the U.S. or global economy negatively impacts consumer confidence and consumer credit factors, our business, financial condition and results of operations could be significantly and adversely affected. Downgrades to the credit ratings of major banks could result in increased borrowing costs for such banks and negatively affect the broader economy. Moreover, Federal Reserve policy, including with respect to certain interest rates, may also adversely affect the value, volatility and liquidity of dividend- and interest-paying securities. Market volatility, rising interest rates and/or a return to unfavorable economic conditions could impair the Fund’s ability to achieve its investment objective.

The occurrence of events similar to those in recent years, such as the aftermath of the war in Iraq, instability in Afghanistan, Pakistan, Egypt, Libya, Syria, Russia, Ukraine and the Middle East, ongoing epidemics of infectious diseases (including coronavirus) in certain parts of the world, terrorist attacks in the United States and around the world, social and political discord, debt crises (such as the Greek crisis), sovereign debt downgrades, increasingly strained relations between the United States and a number of foreign countries, including traditional allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia, and the international community generally, new and continued political unrest in various countries, such as Venezuela and Spain, the exit or potential exit of one or more countries from the EU or the EMU, continued changes in the balance of political power among and within the branches of the U.S. government, among others, may result in market volatility, may have long term effects on the U.S. and worldwide financial markets, and may cause further economic uncertainties in the United States and worldwide.

The current political climate has intensified concerns about a potential trade war between China and the United States, as each country has recently imposed tariffs on the other country’s products. These actions may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, substantial price reductions of goods and possible failure of individual companies and/or large segments of China’s export industry, which could have a negative impact on our performance. U.S. companies that source material and goods from China and those that make large amounts of sales in China would be particularly vulnerable to an escalation of trade tensions. Uncertainty regarding the outcome of the trade tensions and the potential for a trade war could cause the U.S. dollar to decline against safe haven currencies, such as the Japanese yen and the euro. Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other escalating

actions may be taken in the future. Any of these effects could have a material adverse effect on our business, financial condition and results of operations.

Changes to United States tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.

There has been ongoing discussion and commentary regarding potential significant changes to United States trade policies, treaties and tariffs. There remains uncertainty about the future relationship between the United States and other countries with respect to the trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies’ access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.

Uncertainty regarding the impact of the United Kingdom's departure from the European Union could negatively impact our business, financial condition and earnings.

On June 23, 2016, the United Kingdom held a referendum in which voters approved an exit from the European Union, commonly referred to as "Brexit". The United Kingdom’s withdrawal from the European Union occurred on January 31, 2020, and the United Kingdom remained in the European Union’s customs union and single market until December 31, 2020 (the “Transition Period”). The United Kingdom and the European Union agreed a Trade and Cooperation Agreement on December 24, 2020 (the “TCA”), which is intended to be operative from the end of the Transition Period. The TCA was ratified by the United Kingdom on December 30, 2020 and is expected to come into full force in February 2021 once relevant European Union institutions have also ratified the TCA. Until then, the TCA governs the United Kingdom's relationship with the European Union on an interim basis. While the TCA regulates a number of important areas, significant parts of the United Kingdom economy are not addressed in detail by the TCA, including in particular the services sector, which represents the largest component of the United Kingdom’s economy. A number of issues, particularly in relation to the financial services sector, remain to be resolved through further bilateral negotiations, which are currently expected to begin in the early part of 2021. As a result, the new relationship between the United Kingdom and the European Union could in the short-term, and possibly for longer, cause disruptions to and create uncertainty in the United Kingdom and European economies, prejudice to financial services businesses that are conducting business in the EU and which are based in the United Kingdom, legal uncertainty regarding achievement of compliance with applicable financial and commercial laws and regulations, and the unavailability of timely information as to expected legal, tax and other regimes.

Rising interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations.

Our debt investments may be based on floating rates, such as London Interbank Offer Rate (“LIBOR”), EURIBOR, the Federal Funds Rate or the Prime Rate. General interest rate fluctuations may have a substantial negative impact on our investments, the value of our common stock and our rate of return on invested capital. A reduction in the interest rates on new investments relative to interest rates on current investments could also have an adverse impact on our net interest income. An increase in interest rates could decrease the value of any investments we hold which earn fixed interest rates, including subordinated loans, senior and junior secured and unsecured debt securities and loans and high yield bonds, and also could increase our interest expense, thereby decreasing our net income. Also, an increase in interest rates available to investors could make investment in our common stock less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock.

Because we have borrowed money, and may issue preferred stock to finance investments, our net investment income depends, in part, upon the difference between the rate at which we borrow funds or pay distributions on preferred stock and the rate that our investments yield. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In periods of

rising interest rates, our cost of funds would increase except to the extent we have issued fixed rate debt or preferred stock, which could reduce our net investment income.

You should also be aware that a change in the general level of interest rates can be expected to lead to a change in the interest rate we receive on many of our debt investments. Accordingly, a change in the interest rate could make it easier for us to meet or exceed the performance threshold and may result in a substantial increase in the amount of incentive compensation payable to our Advisor with respect to the portion of the incentive compensation based on income.

Changes relating to the LIBOR calculation process, the phase-out of LIBOR and the use of replacement rates for LIBOR may adversely affect the value of our portfolio securities.

In July 2017, the head of the United Kingdom Financial Conduct Authority announced the desire to phase out the use of LIBOR by the end of 2021. The announcement indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021. It is impossible to predict whether and to what extent banks will continue to provide LIBOR submissions to the administrator of LIBOR or whether any additional reforms to LIBOR may be enacted in the United Kingdom or elsewhere. Actions by the British Bankers’ Association, the United Kingdom Financial Conduct Authority or other regulators or law enforcement agencies as a result of these or future events, may result in changes to the manner in which LIBOR is determined. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for LIBOR-based securities or the value of our portfolio of LIBOR-indexed, floating-rate debt securities

At this time, no consensus exists as to what rate or rates will become accepted alternatives to LIBOR, although the U.S. Federal Reserve, in connection with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is considering replacing U.S. dollar LIBOR with the Secured Overnight Financing Rate (“SOFR”). Given the inherent differences between LIBOR and SOFR, or any other alternative benchmark rate that may be established, there are many uncertainties regarding a transition from LIBOR, including but not limited to the need to amend all contracts with LIBOR as the referenced rate and how this will impact the cost of variable rate debt and certain derivative financial instruments. In addition, SOFR or other replacement rates may fail to gain market acceptance. Any failure of SOFR or alternative reference rates to gain market acceptance could adversely affect the return on, value of and market for securities linked to such rates.

We may not replicate the Company’s historical performance or the historical performance of other entities managed or supported by the Advisor.

We may not be able to replicate the Company’s historical performance or the historical performance of the Advisor’s investments, and our investment returns may be substantially lower than the returns achieved by the Company in the past. We can offer no assurance that the Advisor will be able to continue to implement our investment objective with the same degree of success as it has had in the past.

Our business model depends upon the development and maintenance of strong referral relationships with other asset managers and investment banking firms.

We are substantially dependent on our informal relationships, which we use to help identify and gain access to investment opportunities. If we fail to maintain our relationships with key firms, or if we fail to establish strong referral relationships with other firms or other sources of investment opportunities, we will not be able to grow our portfolio of equity investments and achieve our investment objective. In addition, persons with whom we have informal relationships are not obligated to inform us of investment opportunities, and therefore such relationships may not lead to the origination of equity or other investments. Any loss or diminishment of such relationships could effectively reduce our ability to identify attractive portfolio companies that meet our investment criteria, either for direct equity investments or for investments through private secondary market transactions or other secondary transactions.

The Advisor’s liability is limited under the investment management agreement, and we are required to indemnify the Advisor against certain liabilities, which may lead the Advisor to act in a riskier manner on our behalf than it would when acting for its own account.

The Advisor has not assumed any responsibility to us other than to render the services described in the investment management agreement, and it will not be responsible for any action of our board of directors in declining to follow the Advisor’s advice or recommendations. Pursuant to the investment management agreement, the Advisor and its members and their respective officers, managers, partners, agents, employees, controlling persons and members and any other person or entity affiliated with it will not be liable to us for their acts under the investment management agreement, absent willful misfeasance, bad faith, gross negligence or reckless disregard in the performance of their duties. We have agreed to indemnify, defend and protect the Advisor and its members and their respective officers, managers, partners, agents, employees, controlling persons and members and any other person or entity affiliated with it with respect to all damages, liabilities, costs and expenses resulting from acts of the Advisor not arising out of willful misfeasance, bad faith, gross negligence or reckless disregard in the performance of their duties under the investment and management agreement. These protections may lead the Advisor to act in a riskier manner when acting on our behalf than it would when acting for its own account.

We may suffer credit losses.

Investment in middle-market companies is highly speculative and involves a high degree of risk of credit loss, and therefore our securities may not be suitable for someone with a low tolerance for risk. These risks are likely to increase during an economic recession.

Our use of borrowed funds, including under the Leverage Program, to make investments exposes us to risks typically associated with leverage.

The Company borrows money, both directly and indirectly through SVCP, TCPC Funding and the SBIC. As a result:

•our common stock is exposed to incremental risk of loss and a decrease in the value of our investments would have a greater negative impact on the value of our common stock than if we did not use leverage;

•adverse changes in interest rates could reduce or eliminate the incremental income we make with the proceeds of leverage;

•we, and indirectly our common stockholders, bear the entire cost of issuing and paying interest or dividends on any borrowed funds issued by us or our subsidiaries; and

•our ability to pay dividends on our common stock will be restricted if our asset coverage ratio is not at least 150% and any amounts used to service indebtedness would not be available for such dividends.

The use of leverage creates increased risk of loss and is considered a speculative investment technique. The use of leverage magnifies the potential gains and losses from an investment and increases the risk of loss of capital. To the extent that income derived by us from investments purchased with borrowed funds is greater than the cost of borrowing, our net income will be greater than if borrowing had not been used. Conversely, if the income from investments purchased from these sources is not sufficient to cover the cost of the leverage, our net investment income will be less than if leverage had not been used, and the amount available for ultimate distribution to the holders of common stock will be reduced. The extent to which the gains and losses associated with leveraged investing are increased will generally depend on the degree of leverage employed. We may, under some circumstances, be required to dispose of investments under unfavorable market conditions in order to maintain our leverage, thus causing us to recognize a loss that might not otherwise have occurred. In the event of a sale of investments upon default under our borrowing arrangements, secured creditors will be contractually entitled to direct such sales and may be expected to do so in their interest, rather than in the interests of the holders of common stock. Holders of common stock will incur losses if the proceeds from a sale in any of the foregoing circumstances are insufficient, after payment in full of amounts due and payable on leverage, including administrative expenses, to repay such holders investments in our common stock. As a result, you could experience a total loss of your investment. Any decrease in our revenue would cause our net income to decline more than it would have had we not

borrowed funds and could negatively affect our ability to make distributions on our common stock. The ability to service any debt that we have or may have outstanding depends largely on our financial performance and is subject to prevailing economic conditions and competitive pressures. There is no limitation on the percentage of portfolio investments that can be pledged to secure borrowings. The amount of leverage that we employ at any particular time will depend on our Advisor’s and our board of director’s assessments of market and other factors at the time of any proposed borrowing.

In addition to regulatory restrictions that restrict our ability to raise capital, the Leverage Program contains various covenants which, if not complied with, could accelerate repayment under the SVCP Facility and TCPC Funding II Facility, thereby materially and adversely affecting our liquidity, financial condition and results of operations.

Under the Leverage Program, we must comply with certain financial and operational covenants. These covenants include:

•restrictions on the level of indebtedness that we are permitted to incur in relation to the value of our assets;

•restrictions on our ability to make distributions and other restricted payments under certain circumstances;

•restrictions on extraordinary events, such as mergers, consolidation and sales of assets;

•restrictions on our ability to incur liens and incur indebtedness; and

•maintenance of a minimum level of stockholders’ equity.

In addition, by limiting the circumstances in which borrowings may occur under the SVCP Facility and TCPC Funding II Facility, the credit agreements related to such facilities (the “Credit Agreements”) in effect provide for various asset coverage, credit quality and diversification limitations on our investments. Such limitations may cause us to be unable to make or retain certain potentially attractive investments or to be forced to sell investments at an inappropriate time and consequently impair our profitability or increase losses or result in adverse tax consequences. As of February 24, 2021, we were in compliance with these covenants. However our continued compliance with these covenants depends on many factors, some of which are beyond our control.

Accordingly, there are no assurances that we will continue to comply with the covenants in the Credit Agreements. Failure to comply with these covenants would result in a default under the Credit Agreements which, if we were unable to obtain a waiver from the respective lenders thereunder, could result in an acceleration of repayments under the Credit Agreements.

The Operating Facility also has certain “key man” provisions. For example, it is an event of default if the Advisor is controlled by any person or group other than (i) a wholly-owned subsidiary of BlackRock, Inc. or (ii) any two of Howard Levkowitz, Michael Leitner, Philip Tseng and Rajneesh Vig (or any replacement manager or individual reasonably acceptable to the administrative agent and approved by the required lenders), provided that if the Advisor is no longer under the control of at least two of such four individuals (or their previously approved replacements) through an event resulting in the death or disability of such individuals, the Advisor has 60 calendar days to replace such individuals with other managers or individuals reasonably acceptable to the administrative agent and approved by the required lenders, provided further that a default (but not an event of default) shall be deemed to exist during such period.

The Operating Facility matures on May 6, 2024, subject to extension by the lenders at the request of SVCP, and the Funding Facility II matures on August 4, 2025, subject to extension by the lender at the request of TCPC Funding II. Any inability to renew, extend or replace the Operating Facility and/or Funding Facility II could adversely impact our liquidity and ability to find new investments or maintain distributions to our stockholders.

The Operating Facility matures on May 6, 2024, subject to extension by the lenders at the request of SVCP. Borrowings under the Operating Facility generally bear interest at a rate of LIBOR plus 2.00% per annum, subject to certain limitations. The Funding Facility II matures on August 4, 2025, subject to extension by the lender at the request of TCPC Funding II. Borrowings under the Funding Facility II generally bear interest at a rate of LIBOR plus 2.00% per annum, subject to certain funding requirements, plus an administrative fee of 0.25% per annum. We

do not currently know whether we will renew, extend or replace the Operating Facility and Funding Facility II upon their maturities or whether we will be able to do so on terms that are as favorable as the Operating Facility and Funding Facility II. In addition, we will be required to liquidate assets to repay amounts due under the Operating Facility and Funding Facility II if we do not renew, extend or replace the Operating Facility and Funding Facility II prior to their respective maturities.

Upon the termination of the Operating Facility and Funding Facility II, there can be no assurance that we will be able to enter into a replacement facility on terms that are as favorable to us, if at all. Our ability to replace the Operating Facility and Funding Facility II may be constrained by then-current economic conditions affecting the credit markets. In the event that we are not able to replace the Operating Facility and Funding Facility II at the time of their maturity, this could have a material adverse effect on our liquidity and ability to fund new investments, our ability to make distributions to our stockholders and our ability to qualify as a RIC.

The creditors under the Operating Facility and Funding Facility II have a first claim on all of the Company’s assets included in the collateral for the respective facilities.

Lenders have fixed dollar claims on our assets that are superior to the claims of our common stockholders. Substantially all of our current assets have been pledged as collateral under the SVCP Facility and TCPC Funding II Facility. If an event of default occurs under either of the SVCP Facility and TCPC Funding II Facility, the respective lenders would be permitted to accelerate amounts due under the respective facilities and liquidate our assets to pay off amounts owed under the respective facilities and limitations would be imposed on us with respect to the purchase or sale of investments. Such limitations may cause us to be unable to make or retain certain potentially attractive investments or to be forced to sell investments at an inappropriate time and consequently impair our profitability or increase our losses or result in adverse tax consequences.

In the event of the dissolution of the Company or otherwise, if the proceeds of the Company’s assets (after payment in full of obligations to any such debtors) are insufficient to repay capital invested in us by the holders of the common stock, no other assets will be available for the payment of any deficiency. None of our board of directors, the Advisor or any of their respective affiliates, have any liability for the repayment of capital contributions made to the Company by the holders of common stock. Holders of common stock could experience a total loss of their investment in the Company.

Lenders under the Operating Facility may have a veto power over the Company’s investment policies.

If a default has occurred under the Operating Facility, the lenders under the Operating Facility may veto changes in investment policies. The Operating Facility also has certain limitations on unusual types of investments such as commodities, real estate and speculative derivatives, which are not part of the Company’s investment strategy or policies in any event.

The SBIC may be unable to make distributions to us that will enable us to meet or maintain RIC status, which could result in the imposition of an entity-level tax.

In order for us to continue to qualify for RIC tax treatment and to minimize corporate-level taxes, we will be required to distribute substantially all of our net ordinary income and net capital gain income, including income from certain of our subsidiaries, which includes the income from the SBIC. We will be partially dependent on the SBIC for cash distributions to enable us to meet the RIC distribution requirements. The SBIC may be limited by the Small Business Investment Act of 1958, and SBA regulations governing SBICs, from making certain distributions to us that may be necessary to enable us to maintain our status as a RIC. We may have to request a waiver of the SBA’s restrictions for the SBIC to make certain distributions to maintain our eligibility for RIC status. We cannot assure you that the SBA will grant such a waiver and if the SBIC is unable to obtain a waiver, compliance with the SBA regulations may result in loss of RIC tax treatment and a consequent imposition of an entity-level tax on us.

The SBIC is subject to SBA regulations, and any failure to comply with SBA regulations could have an adverse effect on our operations.

On April 22, 2014, the SBIC received an SBIC license from the SBA. The SBIC license allows the SBIC to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, will have a superior claim to the SBIC’s assets over our stockholders in the event we liquidate the SBIC or the SBA exercises its remedies under the SBA-guaranteed debentures issued by the SBIC upon an event of default.

Under current SBA regulations, a licensed SBIC can provide capital to those entities that have a tangible net worth not exceeding $19.5 million and an average annual net income after Federal income taxes not exceeding $6.5 million for the two most recent fiscal years. In addition, a licensed SBIC must devote 25% of its investment activity to those entities that have a tangible net worth not exceeding $6.0 million and an average annual net income after Federal income taxes not exceeding $2.0 million for the two most recent fiscal years. The SBA regulations also provide alternative size standard criteria to determine eligibility, which depend on the industry in which the business is engaged and are based on factors such as the number of employees and gross sales. The SBA regulations permit licensed SBICs to make long term loans to small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services. The SBA also places certain limitations on the financing terms of investments by SBICs in portfolio companies and prohibits SBICs from providing funds for certain purposes or to businesses in a few prohibited industries. Compliance with SBA requirements may cause the SBIC to forego attractive investment opportunities that are not permitted under SBA regulations.

Further, the SBA regulations require that a licensed SBIC be periodically examined and audited by the SBA to determine its compliance with the relevant SBA regulations. The SBA prohibits, without prior SBA approval, a “change of control” of an SBIC or any transfers of the capital stock of a licensed SBIC. If the SBIC fails to comply with applicable SBA regulations, the SBA could, depending on the severity of the violation, limit or prohibit its use of debentures, declare outstanding debentures immediately due and payable, and/or limit it from making new investments. In addition, the SBA can revoke or suspend a license for willful or repeated violation of, or willful or repeated failure to observe, any provision of the Small Business Investment Act of 1958 or any rule or regulation promulgated thereunder. The Advisor, as the SBIC’s investment adviser, does not have any previous experience managing an SBIC. Its limited experience in complying with SBA regulations may hinder its ability to take advantage of the SBIC’s access to SBA-guaranteed debentures. Any failure to comply with SBA regulations could have an adverse effect on our operations.

SBA regulations limit the outstanding dollar amount of SBA-guaranteed debentures that may be issued by an SBIC or group of SBICs under common control.

The SBA regulations currently limit the dollar amount of SBA-guaranteed debentures that can be issued by any one SBIC to $150.0 million or to a group of SBICs under common control to $350.0 million.

An SBIC may not borrow an amount in excess of two times (and in certain cases, up to three times) its regulatory capital. As of December 31, 2020, the SBIC had $138.0 million in SBA-guaranteed debentures outstanding. If we reach the maximum dollar amount of SBA-guaranteed debentures permitted, and if we require additional capital, our cost of capital may increase, and there is no assurance that we will be able to obtain additional financing on acceptable terms.

Moreover, the current status of the SBIC as an SBIC does not automatically assure that the SBIC will continue to receive SBA-guaranteed debenture funding. Receipt of SBA leverage funding is dependent upon the SBIC continuing to be in compliance with SBA regulations and policies and available SBA funding. The amount of SBA leverage funding available to SBICs is dependent upon annual Congressional authorizations and in the future may be subject to annual Congressional appropriations. There can be no assurance that there will be sufficient debenture funding available at the times desired by the SBIC.

The debentures guaranteed by the SBA have a maturity of ten years and require semi-annual payments of interest. The SBIC will need to generate sufficient cash flow to make required interest payments on the debentures. If the SBIC is unable to meet their financial obligations under the debentures, the SBA, as a creditor, will have a superior claim to the SBIC’s assets over our stockholders in the event we liquidate the SBIC or the SBA exercises its remedies under such debentures as the result of a default by us.

If we incur additional leverage, it will increase the risk of investing in shares of our common stock.

As a BDC regulated under the 1940 Act, we are generally required to maintain a certain asset coverage for senior securities representing indebtedness (i.e., debt) or stock (i.e., preferred stock).

Following receipt of the necessary stockholder and Board approvals, effective February 9, 2019, the minimum asset coverage ratio requirement was reduced from 200% to 150%, pursuant to Section 61(a)(2) of the 1940 Act (i.e., from a 1:1 debt to equity ratio to a 2:1 debt to equity ratio). Therefore, we may be able to issue an increased amount of senior securities and incur additional indebtedness in the future and, therefore, your risk of an investment in us may increase.

If our asset coverage falls below the required limit, we will not be able to incur additional debt until we are able to comply with the asset coverage applicable to us. This could have a material adverse effect on our operations, and we may not be able to make distributions to stockholders. The actual amount of leverage that we employ will depend on our and our Board of Directors’ assessment of market and other factors at the time of any proposed borrowing. We cannot assure you that we will be able to obtain credit at all or on terms acceptable to us.

The Company has indebtedness pursuant to the Leverage Program and expects, in the future, to borrow additional amounts under the Operating Facility and Funding Facility II and may increase the size of the Operating Facility and Funding Facility II or enter into other borrowing arrangements.

In the case of a liquidation event, those lenders would receive proceeds before our stockholders. In addition, borrowings, also known as leverage, magnify the potential for gain or loss on amounts invested and, therefore, increase the risks associated with investing in our common stock. Leverage is generally considered a speculative investment technique. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more than it otherwise would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause the net asset value attributable to our common stock to decline more than it otherwise would have had we not leveraged. Similarly, any increase in our revenue in excess of interest expense on our borrowed funds would cause our net income to increase more than it would without the leverage. Any decrease in our revenue would cause our net income to decline more than it would have had we not borrowed funds and could negatively affect our ability to make distributions on our common stock. Our ability to service any debt that we incur depends largely on our financial performance and is subject to prevailing economic conditions and competitive pressures.

Illustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below. The calculation is based on our level of leverage at December 31, 2020, which represented borrowings equal to 51.2% of our total assets. On such date, we also had $1,672.0 million in total assets; $1,629.6 million in total investments; an average cost of funds of 3.54%; $856.3 million aggregate principal amount of debt outstanding; and $765.0 million of total net assets. In order to compute the “Corresponding Return to Common Stockholders,” the “Assumed Return on Portfolio (Net of Expenses Other than Interest)” is multiplied by the total value of our investment portfolio at December 31, 2020 to obtain an assumed return to us. From this amount, interest expense multiplied the combined rate of interest of 3.54% by the $856.3 million of debt is subtracted to determine the return available to stockholders. The return available to stockholders is then divided by the total value of our net assets at December 31, 2020 to determine the “Corresponding Return to Common Stockholders.” Actual interest payments may vary.


Assumed Return on Portfolio (Net of Expenses Other than Interest)	-10	%	-5	%	0	%	5	%	10	%
Corresponding Return to Common Stockholders	-25	%	-15	%	-4	%	7	%	17	%

The assumed portfolio return in the table is based on SEC regulations and is not a prediction of, and does not represent, our projected or actual performance. The table also assumes that we will maintain a constant level of leverage. The amount of leverage that we use will vary from time to time.

The lack of liquidity in substantially all of our investments may adversely affect our business.

Our investments generally are made and will continue to be made in private companies. Substantially all of these securities will be subject to legal and other restrictions on resale or will be otherwise less liquid than publicly traded securities. The illiquidity of our investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded our investments. Further, we may face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we or an affiliated manager has material non-public information regarding such portfolio company.

A substantial portion of our portfolio investments are recorded at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors, who also approve in good faith the valuation of such securities and, as a result, there may be uncertainty regarding the value of our portfolio investments.

The debt and equity investments that we make for which market quotations are not readily available will be valued at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors, who also approve in good faith the valuation of such securities. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. Our net asset value could be adversely affected if determinations regarding the fair value of these investments were materially higher than the values ultimately realized upon the disposal of such investments.

We are exposed to risks associated with changes in interest rates.

General interest rate fluctuations may have a substantial negative impact on our investments, the value of our common stock and our rate of return on invested capital. A reduction in the interest rates on new investments relative to interest rates on current investments could also have an adverse impact on our net investment income. An increase in interest rates could decrease the value of any investments we hold that earn fixed interest rates, including subordinated loans, senior and junior secured and unsecured debt securities and loans and high-yield bonds, and also could increase our interest expense, thereby decreasing our net income. Also, an increase in interest rates available to investors could make investment in our common stock less attractive if we are not able to increase our dividend rate, which could reduce the value of our common stock.

Our Advisor and its affiliates and employees may have certain conflicts of interest.

As a global provider of investment management, risk management and advisory services to institutional and retail clients, BlackRock, the Advisor and their respective affiliates (for purposes of this discussion of potential conflicts, the “BlackRock Entities”), engage in a broad spectrum of activities, including sponsoring and managing a variety of public and private investment funds, funds of funds and separate accounts across fixed income, liquidity, equity, alternative investment and real estate strategies; providing financial advisory services; providing technology infrastructure and analytics under the BlackRock Solutions® brand and engaging in certain broker-dealer activities and other activities. Although the relationships and activities of the BlackRock Entities should help enable these entities to offer attractive opportunities and services to the Company, such relationships and activities create certain

inherent actual and potential conflicts of interest. In the ordinary course of business, the BlackRock Entities engage in activities where their interests or the interests of their clients may conflict with the interests of the Company, certain investors or a group of investors, or the Company’s investments. The following discussion enumerates certain potential and actual conflicts of interest.

Allocation of Investment Opportunities. The BlackRock Entities manage and advise numerous accounts for clients around the world, such as registered and unregistered funds and owners of separately managed accounts (collectively, “Client Accounts”). Client Accounts include funds and accounts in which the BlackRock Entities or their personnel have an interest (“BlackRock Accounts”). Certain of these Client Accounts have investment objectives, and utilize investment strategies, that are similar to the Company’s. As a result, certain investments may be appropriate for the Company and also for other Client Accounts. The BlackRock Entities’ allocation of investment opportunities among various Client Accounts presents inherent potential and actual conflicts of interest, particularly where an investment opportunity is limited. These potential conflicts are exacerbated in situations where BlackRock is entitled to higher fees and incentive compensation from certain Client Accounts than from other Client Accounts (including the Company), where the portfolio managers making an allocation decision are entitled to an incentive fee, carried interest or other similar compensation from such other Client Accounts, or where there are differences in proprietary investments in the Company and other Client Accounts. The prospect of achieving higher compensation or greater investment return from another investment vehicle or separate account than from the Company provides incentives for the Advisor or other BlackRock Entities to favor the other investment vehicle or separate account over the Company when, for example, allocating investment opportunities that the Advisor believes could result in favorable performance. It is the policy of BlackRock not to make decisions based on the foregoing interests or greater fees or compensation.

Any person that owns, directly or indirectly, 5% or more of our outstanding voting securities or is managed by the Advisor will generally be an affiliate of the Company for purposes of the 1940 Act and the Company is generally prohibited from participating in certain transactions such as co-investing with, or buying or selling any security from or to, such affiliate, absent the prior approval of the Independent Directors and, in some cases, of the SEC. However, the Advisor and the funds managed by the Advisor have received an order providing an exemption from certain SEC regulations prohibiting transactions with affiliates (the “Order”). The Order requires that certain procedures be followed prior to making an investment subject to the Order and such procedures could in certain circumstances adversely affect the price paid or received by the Company or the availability or size of the position purchased or sold by the Company. The Advisor may also face conflicts of interest in making investments pursuant to the Order.

The 1940 Act also prohibits certain “joint” transactions with certain of the Company’s affiliates, which could include investments in the same portfolio company (whether at the same or different times), without prior approval of the Independent Directors and, in some cases, of the SEC. The Company is prohibited from buying or selling any security from or to any person who owns more than 25% of the Company’s voting securities and from or to certain of that person’s affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC (other than certain limited situations pursuant to current regulatory guidance). The analysis of whether a particular transaction constitutes a joint transaction requires a review of the relevant facts and circumstances relating to the particular transaction. Similar restrictions limit the Company’s ability to transact business with its officers or directors or their affiliates.

To address actual and potential conflicts associated with allocation of investments, BlackRock has developed an investment allocation policy (the “Investment Allocation Policy”) and related guidelines. In addition, certain BlackRock Entities and business units have supplemental allocation policies for making allocation decisions among Client Accounts managed by such BlackRock Entities (together with the Investment Allocation Policy and related guidelines, the “Allocation Policy”). The Allocation Policy is intended to ensure that investment opportunities are allocated on a fair and equitable basis among Client Accounts over time, taking into account various factors including the Client Account’s investment objective, guidelines and restrictions and other portfolio construction considerations; available capital and liquidity needs; tax, regulatory and contractual considerations; risk or investment concentration parameters; supply or demand for a security at a given price level; size of available investment; unfunded capital commitments or cash availability and liquidity requirements; leverage limitations; regulatory restrictions; contractual restrictions (including with other clients); minimum investment size; relative size;

and such other factors as may be relevant to a particular transaction or Client Account. The BlackRock Entities reserve the right to allocate investment opportunities appropriate for the investment objectives of the Company and other Client Accounts in any other manner deemed fair and equitable by the BlackRock Entities consistent with the Allocation Policy, the Order and applicable law. The application of the Allocation Policy, the Order and the foregoing considerations may result in a particular Client Account, including the Company, not receiving an allocation of an investment opportunity that has been allocated to other Client Accounts following the same or similar strategy, or receiving a smaller allocation than other Client Accounts or an allocation on an other than pro rata basis. Furthermore, as the investment programs of the Company and the other applicable Client Accounts change and develop over time, additional issues and considerations may affect the Allocation Policy and the expectations of the BlackRock Entities with respect to the allocation of investment opportunities to the Company and other Client Accounts. BlackRock and the Advisor reserve the right to change the Allocation Policy and guidelines relating thereto from time to time without the consent of or notice to stockholders, subject to the disclosure requirements of applicable law.

As a general matter, it is expected the Company will participate in investments deemed appropriate for the Company’s strategy and either sourced by the investment personnel directly responsible for managing the Company (though investments sourced by such personnel may also be allocated to other Client Accounts that may be managed by other investment teams) or made available for investment by the Company pursuant to the terms of the Order.

Allocation of Expenses. Side-by-side management by the BlackRock Entities of the Company and Client Accounts raises other potential and actual conflicts of interest, including those associated with allocating expenses attributable to the Company and one or more other Client Accounts. The Advisor and its affiliates will attempt to make such allocations on a basis that they consider to be fair and equitable to the Company under the circumstances over time and considering such factors as it deems relevant. The allocations of such expenses may not be proportional, and any such determinations involve inherent matters of discretion, e.g., in determining whether to allocate pro rata based on number of Client Accounts or proportionately in accordance with asset size, or in certain circumstances determining whether a particular expense has a greater benefit to the Company, other Client Accounts or the Advisor and/or its affiliates.

Activities of Other Client Accounts. The BlackRock Entities will, from time to time, be actively engaged in transactions on behalf of other Client Accounts in the same investments, securities, derivatives and other instruments in which the Company will directly or indirectly invest. Trading for certain other Client Accounts is carried out without reference to positions held directly or indirectly by the Company and may have an effect on the value or liquidity of the positions so held or may result in another Client Account having an interest in an issuer adverse to that of the Company.

Under certain circumstances and subject to the Order and applicable law, the Company may invest directly or indirectly in a transaction in which one or more other Client Accounts are expected, or seek, to participate or already have made, or concurrently will make or seek to make, an investment. The Company and the other Client Accounts may have conflicting interests and objectives in connection with such investments, including with respect to views on the operations or activities of the project or company involved, the targeted returns from the investment and the timeframe for, and method of, exiting the investment. For example, the Advisor’s decisions on behalf of other Client Accounts to sell, redeem from or otherwise liquidate a security in which the Company is invested may adversely affect the Company, including by causing such investment to be less liquid or more concentrated, or by causing the Company to no longer participate in a controlling position in the investment or to lose the benefit of certain negotiated terms, including, without limitation, fee discounts. Conflicts will also arise in cases where the Company, directly or indirectly, and other Client Accounts invest in different parts of an issuer’s capital structure, including circumstances in which one or more Client Accounts may own private securities or obligations of an issuer and other Client Accounts may own public securities of the same issuer. If an issuer in which the Company, directly or indirectly, and one or more other Client Accounts hold different classes of securities (or other assets, instruments or obligations issued by such issuer) encounters financial problems, decisions over the terms of any workout will raise potential conflicts of interests (including, for example, conflicts regarding the terms of recapitalizations and proposed waivers, amendments or enforcement of debt covenants). As a result, one or more Client Accounts may pursue or enforce rights with respect to a particular issuer in which the Company has directly or indirectly invested, and those activities may have an adverse effect on the Company. Because of the different legal rights associated with

debt and equity of the same portfolio company, BlackRock expects to face a potential conflict of interest in respect of the advice given to, and the actions taken on behalf of, the Company versus another Client Account (e.g., the terms of debt instruments, the enforcement of covenants, the terms of recapitalizations and the resolution of workouts or bankruptcies). For example, if the Company holds debt securities of an issuer and a Client Account directly or indirectly holds equity securities of the same issuer, then, if the issuer experiences financial or operational challenges, the Company may seek a liquidation of the issuer in which it may be paid in full, whereas the Client Account, as a direct or indirect equity holder, might prefer a reorganization that holds the potential to create value for the equity holders. Similarly, if additional capital is necessary as a result of financial or other difficulties, or to finance growth of other opportunities, subject to the Order and applicable law and regulation, a Client Account may not provide such additional capital and the Company may do so, or vice versa. In the event of an insolvency, bankruptcy or similar proceeding of an issuer, the Company may be limited (by applicable law, courts or otherwise) in the positions or actions it may be permitted to take due to other interests held or actions or positions taken by other Client Accounts. In negotiating the terms and conditions of any such investments, or any subsequent amendments or waivers, the Advisor and the other BlackRock Entities may find that their own interests, the interests of the Company and/or the interests of one or more other Client Accounts could conflict. Any of the foregoing conflicts of interest will be discussed and resolved on a case-by-case basis. The resolution of such conflicts will take into consideration the interests of the relevant parties, the circumstances giving rise to the conflict, the Order to the extent applicable and applicable law. Stockholders should be aware that conflicts will not necessarily be resolved in favor of the Company and that the Company could be adversely affected by the actions taken by BlackRock Entities on behalf of Client Accounts.

In order to avoid or reduce the conflicts that may arise in cases where the Company, directly or indirectly, and other Client Accounts invest in different parts of an issuer’s capital structure, or for other reasons, the Company may choose not to invest in issuers in which other Client Accounts hold an existing investment, even if the Advisor believes such investment opportunity to be attractive and otherwise appropriate for the Company and is permitted under applicable law and regulation, which may adversely affect the performance of the Company.

Other transactions by one or more Client Accounts also may have the effect of diluting the values or prices of investments held directly or indirectly by the Company or otherwise disadvantaging the Company. This may occur when portfolio decisions regarding the Company are based on research or other information that is also used to support portfolio decisions for other Client Accounts. When a BlackRock Entity implements a portfolio decision or strategy on behalf of a Client Account other than the Company ahead of, or contemporaneously with, similar portfolio decisions or strategies for the Company (whether or not the portfolio decisions emanate from the same research analysis or other information), market impact, liquidity constraints or other factors could result in the Company receiving less favorable investment results, and the cost of implementing such portfolio decisions or strategies for the Company could increase, or the Company could otherwise be disadvantaged.

Additionally, if the Company makes an investment in a portfolio company in conjunction with an investment made by another Client Account, the Company may not invest through the same investment vehicles, have the same access to credit or employ the same hedging or investment strategies as such other Client Account. This likely will result in differences in investment cost, investment terms, leverage and associated expenses between the Company and any other Client Account. There can be no assurance that the Company and the other Client Accounts will exit the investment at the same time or on the same terms, and there can be no assurance that the Company’s return on such an investment will be the same as the returns achieved by any other Client Accounts participating in the transactions. Given the nature of these conflicts, there can be no assurance that the resolution of these conflicts will be beneficial to the Company.

The BlackRock Entities may also, in certain circumstances and subject to the Order and applicable law and regulation, pursue or enforce rights or take other actions with respect to a particular issuer or investment jointly on behalf of the Company and other Client Accounts. In such circumstances, the Company may be adversely impacted by the other Client Accounts’ activities, and transactions for the Company may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the case had the other Client Accounts not pursued a particular course of action with respect to the issuer or investment. For example, one or more Client Accounts may dispose of or make an in kind distribution of its portion of an investment that is also held by the Company and other

Client Accounts, and such action may adversely affect the Company and such other Client Accounts that continue to hold such investment.

Conflicts may also arise because portfolio decisions made by the Advisor on behalf of the Company may benefit other BlackRock Entities or Client Accounts, including BlackRock Accounts. For example, subject to the Order and applicable law and regulation, the Company may invest directly or indirectly in the securities, bank loans or other obligations of issuers in which a Client Account has an equity, debt or other interest, or vice versa. In certain circumstances, the Advisor may be incentivized not to undertake certain actions on behalf of the Company in connection with such investments, in view of a BlackRock Entity’s or Client Account’s involvement with the relevant issuer or investment. Further, the Company may also engage in investment transactions that result in other Client Accounts being relieved of obligations or otherwise divesting of investments that the Company also holds or which cause the Company to have to divest certain investments. The purchase, holding and sale of investments by the Company may enhance the profitability of another Client Account’s own investments in and activities with respect to such investments.

Without limiting the generality of the foregoing, the Company may invest, directly or indirectly, in equity of investments or issuers affiliated with the BlackRock Entities or in which a BlackRock Entity or a Client Account has a direct or indirect debt or other interest, or vice versa, and may acquire such equity or debt either directly or indirectly through public or private acquisitions. Such investments may benefit the BlackRock Entities or Client Accounts. In addition, the Advisor may be incentivized not to undertake certain actions on behalf of the Company in connection with such investments, in view of a BlackRock Entity’s or Client Account’s involvement with the relevant issuer or investment.

Moreover, the Advisor’s investment professionals, its senior management and employees serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as the Company. Accordingly, these individuals may have obligations to investors in those entities or funds, the fulfillment of which might not be in the best interests of the Company or stockholders. In addition, certain of the personnel employed by the Advisor or focused on the Company’s business may change in ways that are detrimental to the Company’s business.

Transactions Between Client Accounts. Each of the BlackRock Entities and the Advisor reserve the right to conduct cross trades between the Company and other Client Accounts in accordance with applicable legal and regulatory requirements. The Advisor may cause the Company to purchase securities or other assets from or sell securities or other assets to, or engage in other transactions with, other Client Accounts or vehicles when the Advisor believes such transactions are appropriate and in the participants’ best interest, subject to applicable law and regulation. The Company may enter into “agency cross transactions,” in which a BlackRock Entity may act as broker for the Company and for the other party to the transaction, to the extent permitted under applicable law and regulation and the relevant Client Account governing documents. In such cases, the Advisor and such other Client Accounts or BlackRock Entities, as applicable, may have a potentially conflicting division of loyalties and responsibilities regarding both parties to the transaction. To the extent that any provision of Section 11(a) of the Exchange Act, or any of the rules promulgated thereunder, is applicable to any transactions effected by the Advisor, such transactions will be effected in accordance with the requirements of such provisions and rules.

Proxy Voting. The Board of Directors has delegated to the Advisor discretion with respect to voting and consent rights of the assets of the Company. Consistent with applicable rules under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), BlackRock has adopted and implemented written proxy voting policies and procedures with respect to individual securities held by the Company that are reasonably designed: (i) to ensure that proxies are voted, consistent with its fiduciary obligations, in the best interests of Client Accounts under the circumstances over time; and (ii) to prevent conflicts of interest from influencing proxy voting decisions made on behalf of clients. Nevertheless, when votes are cast in accordance with BlackRock’s proxy voting policy and in a manner that BlackRock believes to be consistent with its fiduciary obligations, actual proxy voting decisions made on behalf of one Client Account may have the effect of favoring or harming the interests of other Client Accounts, including the Company. Stockholders may receive a copy of BlackRock’s proxy voting policy, upon request, and

may also obtain a copy at: http://www.blackrock.com/corporate/en-us/about-us/responsible-investment/responsible-investment-reports.

Investment Terms of Other Client Accounts. The investment terms offered to other Client Accounts or to investors in other Client Accounts with similar investment objectives as the Company may be different than those applicable to our stockholders and may create conflicts. In particular, with respect to investors in other Client Accounts that are managed as dedicated funds or with respect to other Client Accounts investing through separate accounts with similar investment objectives to the Company, information sharing may, to the extent permitted under applicable law and regulation, be more extensive, detailed and timely as compared to information available to our stockholders, and the other Client Accounts’ liquidity may not be subject to the restrictions that apply to our stockholders.

Management of the Company. In connection with the management of the Company, the Board of Directors and/or the Advisor will have the right to make certain determinations on behalf of the Company, in its discretion. Any such determinations may affect stockholders differently and some stockholders may be adversely affected by such determinations by the Board of Directors or Advisor. Stockholders may be situated differently in a number of ways, including being resident of, or organized in, various jurisdictions, being subject to different tax rules or regulatory structures and/or having different internally- or externally-imposed investment policies, restrictions or guidelines. As a result, conflicts of interest may arise in connection with decisions made by the Board of Directors or the Advisor that may be more beneficial for certain stockholders. In making determinations on behalf of the Company, including in structuring and completing investments, the Advisor intends to consider the investment and tax objectives of the Company and the stockholders as a whole, not the investment, tax or other objectives of any stockholder individually.

Subject to applicable law, including the 1940 Act, and the terms of the applicable contracts with the Company, BlackRock Entities may from time to time, and without notice to the Company or stockholders, insource or outsource to third-parties, including parties which are affiliated with BlackRock, certain processes or functions in connection with a variety of services that they provide to the Company in their administrative or other capacities. Such in-sourcing or outsourcing may give rise to potential conflicts of interest.

Limited Access to Information; Information Advantage of Certain BlackRock Clients. As a result of receiving client reports, service on a Client Account’s advisory board, affiliation with the Advisor or otherwise, one or more BlackRock clients may have access to different information regarding the BlackRock Entities’ transactions, strategies or views, and may act on such information in accounts not controlled by the BlackRock Entities, which may have a material adverse effect on the performance of the Company. The Company and its investments may also be adversely affected by market movements or by decreases in the pool of available securities or liquidity arising from purchases and sales by, as well as increases of capital in, and withdrawals of capital from, other Client Accounts and other accounts of BlackRock clients not controlled by BlackRock. These effects can be more pronounced in respect of investments with limited capacity and in thinly traded securities and less liquid markets.

Furthermore, our stockholders’ rights to information regarding the Advisor or the Company generally will be limited to applicable reporting obligations and information requirements under the Exchange Act and applicable state law. It is anticipated that the Advisor and its affiliates will obtain certain types of material information from or relating to the Company’s investments that will not be disclosed to stockholders because such disclosure is prohibited, including as a result of contractual, legal or similar obligations outside of BlackRock’s control. Such limitations on the disclosure of such information may have adverse consequences for stockholders in a variety of circumstances and may make it difficult for a stockholder to monitor the Advisor and its performance.

Advisor Decisions May Benefit BlackRock Entities and BlackRock Accounts. BlackRock Entities may derive ancillary benefits from certain decisions made on behalf of the Company. While the Advisor will make decisions for the Company in accordance with its obligations to manage the Company appropriately, the fees, allocations, compensation and other benefits to the BlackRock Entities (including benefits relating to business relationships of the BlackRock Entities) may be greater as a result of certain portfolio, investment, service provider or other decisions made by the Advisor for the Company than they would have been had other decisions been made which

also might have been appropriate for the Company. In addition, BlackRock Entities may invest in Client Accounts and therefore may indirectly derive ancillary benefits from certain decisions made by the Advisor. The Advisor may also make decisions and exercise discretion with respect to the Company that could benefit BlackRock Entities that have invested in the Company.

Temporary Investments in Cash Management Products. Subject to applicable law, the Company may invest, on a temporary basis, in short-term, high-grade assets or other cash management products, including SEC-registered investment funds (open-end or closed-end) or unregistered funds, including any such funds that are sponsored, managed or serviced by advisory BlackRock Entities. In connection with any of these investments, the Company will bear all fees pertaining to the investment, including advisory, administrative or 12b-1 fees, and no portion of any fees otherwise payable by the Company will be offset against fees payable in accordance with any of these investments (i.e., there could be “double fees” involved in making any of these investments which would not arise in connection with a stockholder’s direct investment in such money market or liquidity funds, because a BlackRock Entity could receive fees with respect to both the management of the Company, on one hand, and such cash management products, on the other). In these circumstances, as well as in other circumstances in which any BlackRock Entities receive any fees or other compensation in any form relating to the provision of services, subject to the Company’s Governing Documents, no accounting, repayment to the Company or offset of the Advisory Fee will be required.

Management Responsibilities. The employees and directors of the Advisor or its affiliates are not under any obligation to devote all of their professional time to the affairs of the Company, but will devote such time and attention to the affairs of the Company as BlackRock determines in its discretion is necessary to carry out the operations of the Company effectively. Employees and directors of the Advisor engage in other activities unrelated to the affairs of the Company, including managing or advising other Client Accounts, which presents potential conflicts in allocating management time, services and functions among the Company and other Client Accounts. These potential conflicts will be exacerbated in situations where employees may be entitled to greater incentive compensation or other remuneration from certain Client Accounts than from other Client Accounts (including the Company).

The Advisor may, subject to applicable law, utilize the personnel or services of its affiliates in a variety of ways to make available to the Company BlackRock’s global capabilities. Although the Advisor believes this practice generally is in the best interests of its clients, it is possible that conflicts with respect to allocation of investment opportunities, portfolio execution, client servicing or other matters may arise due to differences in regulatory requirements in various jurisdictions, time differences or other reasons. The Advisor will seek to ameliorate any conflicts that arise and may determine not to utilize the personnel or services of a particular affiliate in circumstances where it believes the potential conflict outweighs the potential benefits.

Investments by Directors, Officers and Employees of BlackRock Entities. The directors, officers and employees of BlackRock Entities are permitted to buy and sell public or private securities, commingled vehicles or other investments held by the Company for their own accounts, or accounts of their family members and in which such BlackRock Entity personnel may have a pecuniary interest, including through accounts (or investments in funds) managed by BlackRock Entities, in accordance with BlackRock’s personal trading policies. As a result of differing trading and investment strategies or constraints, positions taken by BlackRock Entity directors, officers, and employees may be the same as or different from, or made contemporaneously or at different times than, positions taken for the Company.

Such persons and/or investment vehicles they manage also may invest in companies in the same industries as companies in which the Company expects to invest, and may compete with the Company for investment opportunities, and their investments may compete with the Company’s investments.

In addition, BlackRock personnel may serve on the boards of directors of companies in the same industries as companies in which the Company expects to invest, which can give rise to conflicting obligations and interests.

As these situations may involve potential conflicts of interest, BlackRock has adopted policies and procedures relating to personal securities transactions, insider trading and other ethical considerations. These policies and procedures are intended to identify and reduce actual conflicts of interest with clients and to resolve such conflicts appropriately if they do occur.

Issues Relating to the Valuation of Assets. While securities and other property held by the Company generally will be valued by reference to an independent third-party source, in certain circumstances holdings may be valued at fair value based upon the principles and methods of valuation set forth in policies adopted by the Board of Directors. Moreover, a significant portion of the assets in which the Company may directly or indirectly invest may not have a readily ascertainable market value and, subject to applicable law, may be valued at fair value based upon the principles and methods of valuation set forth in policies adopted by the Board of Directors.

Potential Restrictions on the Advisor’s Activities on Behalf of the Company. From time to time, the Advisor expects to be restricted from purchasing or selling securities or taking other actions on behalf of the Company because of regulatory and legal requirements applicable to BlackRock Entities, other Client Accounts and/or the Advisor’s internal policies designed to comply with or limit the applicability of, or which otherwise relate to, such requirements. An investment fund not advised by BlackRock Entities may not be subject to the same considerations. There may be periods when the Advisor (on behalf of the Company) may not initiate or recommend certain types of transactions, may limit or delay purchases, may sell or redeem existing investments, forego transactions or other investment opportunities, restrict or limit the exercise of rights (including voting rights), or may otherwise restrict or limit their advice with respect to securities or instruments issued by or related to issuers for which BlackRock Entities are performing advisory or other services. Such policies may restrict the Company’s activities more than required by applicable law. For example, when BlackRock Entities are engaged to provide advisory or risk management services for an issuer, the Company may be prohibited from or limited in purchasing or selling interests of that issuer, particularly in cases where BlackRock Entities have or may obtain material non-public information about the issuer. Similar prohibitions or limitations could also arise if: (i) BlackRock Entity personnel serve as directors or officers of issuers, the securities or other interests of which the Company wishes to purchase or sell, (ii) the Advisor on behalf of the Company participates in a transaction (including a controlled acquisition of a U.S. public company) that results in the requirement to restrict all purchases, sales and voting of equity securities of such target issuer, or (iii) regulations, including portfolio affiliation rules or stock exchange rules, prohibit participation in offerings by an issuer when other Client Accounts have prior holdings of such issuer’s securities or desire to participate in such a public offering, or where other Client Accounts have or may have short positions in such issuer’s securities. However, where permitted by applicable law, and where consistent with the BlackRock Entities’ policies and procedures, the BlackRock Entities may, but are not obligated to, seek to avoid such prohibitions or limitations (such as through the implementation of appropriate information barriers), and in such cases, the Advisor on behalf of the Company may purchase or sell securities or instruments that are issued by such issuers. In addition, certain activities and actions may also be considered to result in reputational risk or disadvantage for the management of the Company and/or for the Advisor and its affiliates, and the Advisor may decline or limit an investment opportunity or dispose of an existing investment as a result.

In addition, in regulated industries and in certain markets, and in certain futures and derivative transactions, there are limits on the aggregate amount of investment by affiliated investors that may not be exceeded without a regulatory filing, the grant of a license or other regulatory or corporate consent. For example, the U.S. Commodity Futures Trading Commission (“CFTC”), the U.S. commodities exchanges and certain non-U.S. exchanges have established limits referred to as “speculative position limits” or “position limits” on the maximum long or short (or, for some commodities, the gross) positions which any person or group of persons may own, hold or control in certain futures or options on futures contracts, and such rules generally require aggregation of the positions owned, held or controlled by related entities. Any such limits may prevent the Company from acquiring positions that might otherwise have been desirable or profitable. Under certain circumstances, the Advisor may restrict a purchase or sale of securities, derivative instruments or other assets on behalf of Client Accounts in anticipation of a future conflict that may arise if such purchase or sale would be made. Any such determination will take into consideration the interests of the relevant Client Accounts, the circumstances that would give rise to the future conflict and applicable law. Such determination will be made on a case by case basis.

Other Services and Activities of the BlackRock Entities. The BlackRock Entities (including the Advisor) will, from time to time, provide financial, consulting and other services to, and receive compensation from, an entity which is the issuer of a security or other investment held by the Company, counterparties to transactions with the Company or third parties that also provide services to the Company. In addition, the BlackRock Entities (including the Advisor) may purchase property (including securities) from, sell property (including securities) or lend funds to, or otherwise deal with, any entity which is the issuer of a security held by the Company, counterparties to transactions with the Company or third parties that also provide services to the Company. It is also likely that the Company will have multiple business relationships with and will invest in, engage in transactions with, make voting decisions with respect to, or obtain services from entities for which BlackRock Entities perform or seek to perform certain financial services. Conflicts are expected to arise in connection with the foregoing.

The BlackRock Entities may derive ancillary benefits from providing investment advisory, administrative and other services to the Company, and providing such services to the Company may enhance the BlackRock Entities’ relationships with various parties, facilitate additional business development, and enable the BlackRock Entities to obtain additional business and generate additional revenue.

Potential Restrictions and Issues Relating to Information Held by BlackRock. The Advisor may not have access to information and personnel of all BlackRock Entities, including as a result of informational barriers constructed between different investment teams and groups within BlackRock focusing on alternative investments and otherwise. Therefore, the Advisor may not be able to manage the Company with the benefit of information held by one or more other investment teams and groups within the BlackRock Entities. However, although it is under no obligation to do so, if it is permitted to do so, the Advisor may consult with personnel on other investment teams and in other groups within BlackRock, or with persons unaffiliated with BlackRock, or may form investment policy committees composed of such personnel, and in certain circumstances, personnel of affiliates of the Advisor may have input into, or make determinations regarding, portfolio management transactions for the Company, and may receive information regarding the Advisor’s proposed investment activities for the Company that generally is not available to the public. There will be no obligation on the part of such persons to make available for use by the Company any information or strategies known to them or developed in connection with their own client, proprietary or other activities. In addition, BlackRock will be under no obligation to make available any research or analysis prior to its public dissemination.

The Advisor makes decisions for the Company based on the Company’s investment program. The Advisor from time to time may have access to certain fundamental analysis, research and proprietary technical models developed by BlackRock Entities and their personnel. There will be no obligation on the part of the BlackRock Entities to make available for use by the Company, or to effect transactions on behalf of the Company on the basis of, any such information, strategies, analyses or models known to them or developed in connection with their own proprietary or other activities. In certain cases, such personnel will be prohibited from disclosing or using such information for their own benefit or for the benefit of any other person, including the Company and other Client Accounts. In other cases, fundamental analyses, research and proprietary models developed internally may be used by various BlackRock Entities and their personnel on behalf of different Client Accounts, which could result in purchase or sale transactions in the same security at different times (and could potentially result in certain transactions being made by one portfolio manager on behalf of certain Client Accounts before similar transactions are made by a different portfolio manager on behalf of other Client Accounts), or could also result in different purchase and sale transactions being made with respect to the same security. The Advisor may also effect transactions for the Company that differ from fundamental analysis, research or proprietary models issued by the BlackRock Entities or by the Advisor itself in various contexts. The foregoing transactions may negatively impact the Company and its direct and indirect investments through market movements or by decreasing the pool of available securities or liquidity, which effects can be more pronounced in thinly traded securities and less liquid markets.

The BlackRock Entities and different investment teams and groups within the Advisor have no obligation to seek information or to make available to or share with the Company any third-party manager with which the Company invests any information, research, investment strategies, opportunities or ideas known to BlackRock Entity personnel or developed or used in connection with other clients or activities. The BlackRock Entities and different investment teams and groups within the Advisor may compete with the Company or any third-party

manager with which the Company invests for appropriate investment opportunities on behalf of their other Client Accounts. The results of the investment activities of the Company may differ materially from the results achieved by BlackRock Entities for other Client Accounts. BlackRock Entities may give advice and take action with respect to other Client Accounts that may compete or conflict with the advice the Advisor may give to the Company, including with respect to their view of the operations or activities of an investment, the return of an investment, the timing or nature of action relating to an investment or the method of exiting an investment.

BlackRock Entities may restrict transactions for themselves, but not for the Company, or vice versa. BlackRock Entities and certain of their personnel, including the Advisor’s personnel or other BlackRock Entity personnel advising or otherwise providing services to the Company, may be in possession of information not available to all BlackRock Entity personnel, and such personnel may act on the basis of such information in ways that have adverse effects on the Company. The Company could sustain losses during periods in which BlackRock Entities and other Client Accounts achieve significant profits.

Material, Non-Public Information. The Advisor and its personnel may not trade for the Company or other Client Accounts or for their own benefit or recommend trading in financial instruments of a company while they are in possession of material, non-public or price sensitive information (“Inside Information”) concerning such company, or disclose such Inside Information to any person not entitled to receive it. The BlackRock Entities (including the Advisor) may have access to Inside Information. The Advisor has instituted an internal information barrier policy designed to prevent securities laws violations based on access to Inside Information. Accordingly, there may be certain cases where the Advisor may be restricted from effecting purchases and/or sales of interests in securities or other financial instruments, or entering into certain transactions or exercising certain rights under such transactions on behalf of the Company and/or the other Client Accounts. There can be no assurance that the Advisor will not receive Inside Information and that such restrictions will not occur. At times, the Advisor, in an effort to avoid restriction for the Company or the other Client Accounts, may elect not to receive Inside Information, which may be relevant to the Company’s portfolio, that other market participants are eligible to receive or have received and could affect decisions that would have otherwise been made.

Any partner, officer or employee of the BlackRock Entities may serve as an officer, director, advisor or in comparable management functions for the investments of other Client Accounts, and any such person may obtain Inside Information in connection therewith, or in connection with such partner’s, officer’s or employee’s other activities in the financial markets. In an effort to manage possible risks arising from the internal sharing of material non-public information, BlackRock maintains a list of restricted securities with respect to which it has access to material non-public information and in which Client Accounts are restricted from trading. If partners, officers or employees of BlackRock obtain such material non-public information about a portfolio company which is an investment of a Client Account, the Company may be prohibited by law, policy or contract, for a period of time, from (i) unwinding a position in such company, (ii) establishing an initial position or taking any greater position in such company and/or (iii) pursuing other investment opportunities, which could impact the returns to the Company. In addition, in certain circumstances, particularly during the liquidation of a Client Account, the Company may be prohibited from trading a position that it holds, directly or indirectly, in the Client Account because BlackRock determines that one or more partners, officers or employees of BlackRock holds material non-public information with respect to one or more remaining positions held by the Client Account.

Transactions with Certain Stockholders. The Company is permitted to enter into transactions with certain stockholders, subject to applicable law. For example, the Advisor may be presented with opportunities to receive financing and/or other services in connection with the Company’s operations and/or the Company’s investments from certain stockholders or their affiliates that are engaged in lending or related business, which subjects the Advisor to conflicts of interest.

The Company’s Use of Investment Consultants and BlackRock’s Relationship with Investment Consultants. Stockholders may work with pension or other institutional investment consultants (collectively, “Investment Consultants”). Investment Consultants provide a wide array of services to pension plans and other institutions, including assisting in the selection and monitoring of investment advisers such as the Advisor. From time to time, Investment Consultants who recommend the Advisor to, and provide oversight of the Advisor for, stockholders may

also provide services to or purchase services from the BlackRock Entities. For example, the BlackRock Entities purchase certain index and performance-related databases and human resources-related information from Investment Consultants and their affiliates. The BlackRock Entities also utilize brokerage execution services of Investment Consultants or their affiliates, and BlackRock Entities personnel may attend conferences sponsored by Investment Consultants. Conversely, from time to time, the BlackRock Entities may be hired by Investment Consultants and their affiliates to provide investment management and/or risk management services, creating possible conflicts of interest.

Other Relationships with BlackRock Entities, Clients and Market Participants. The BlackRock Entities have developed, and will in the future develop, relationships with (or may invest in) a significant number of clients and other market participants (e.g., financial institutions, service providers, managers of investment funds, banks, brokers, advisors, joint venturers, consultants, finders (including executive finders), executives, attorneys, accountants, institutional investors, family offices, lenders, current and former employees, and current and former portfolio investment executives, as well as certain family members or close contacts of these persons), including those that may hold or may have held investments similar to the investments intended to be made by the Company, that may themselves represent appropriate investment opportunities for the Company, or that may compete with the Company for investment opportunities. Furthermore, the Advisor generally exercises its discretion to recommend to the Company or to an investment thereof that it contract for services with such clients and market participants, and/or with other BlackRock Entities. It is difficult to predict the circumstances under which these relationships could become material conflicts for the Company, but it is possible that as a result of such relationships (or agreements with other Client Accounts) the Advisor may refrain from making all or a portion of any investment or a disposition on behalf of the Company, which may materially adversely affect the performance of the Company. Certain of these persons or entities will invest (or will be affiliated with an investor) in, engage in transactions with and/or provide services (including services at reduced rates) to, the BlackRock Entities and/or Client Accounts and/or their affiliates. BlackRock expects to be subject to a potential conflict of interest with the Company in recommending the retention or continuation of a third-party service provider to such Company or a portfolio investment if such recommendation, for example, is motivated by a belief that the service provider or its affiliate(s) will continue to invest in the Company or one or more Client Accounts, will provide the BlackRock Entities information about markets and industries in which the BlackRock Entities operate (or are contemplating operations) or will provide other services that are beneficial to the BlackRock Entities, the Company or one or more Client Accounts. The Advisor expects to be subject to a potential conflict of interest in making such recommendations, in that Advisor has an incentive to maintain goodwill between it and clients and other market participants, while the products or services recommended may not necessarily be the best available or most cost effective to the Company or its investments.

Legal Representation. The Company, as well as the Advisor and/or other BlackRock Entities, have engaged several counsel to represent them. In connection with such representation, counsel has relied upon certain information furnished to them by the Advisor and the BlackRock Entities, and has not investigated or verified the accuracy or completeness of such information. Such counsel’s engagement is limited to the specific matters as to which they are consulted and, therefore, there may exist facts or circumstances that could have a bearing on the Company’s or BlackRock’s financial condition or operations with respect to which counsel has not been consulted and for which they expressly disclaim any responsibility. Counsel has not represented and will not be representing stockholders. No independent counsel has been retained (or is expected to be retained) to represent stockholders. No attorney-client relationship exists between any counsel and any stockholder solely by such stockholder making an investment in the Company. As a result, stockholders are urged to retain their own counsel.

Resolution of Conflicts. Any conflicts of interest that arise between the Company or particular stockholders, on the one hand, and other Client Accounts or BlackRock Entities or affiliates thereof, on the other hand, will be discussed and resolved on a case-by-case basis by business, legal and compliance officers of the Advisor and its affiliates, as applicable. Any such discussions will take into consideration the interests of the relevant parties and the circumstances giving rise to the conflicts. Stockholders should be aware that conflicts will not necessarily be resolved in favor of the interests of the Company or any affected stockholder. There can be no assurance that any actual or potential conflicts of interest will not result in the Company receiving less favorable investment or other terms with respect to investments, transactions or services than if such conflicts of interest did not exist.

Potential Impact on the Company. It is difficult to predict the circumstances under which one or more of the foregoing conflicts could become material, but it is possible that such relationships could require the Company to refrain from making all or a portion of any investment or a disposition in order for BlackRock to comply with its fiduciary duties, the 1940 Act, the Advisers Act or other applicable law. The Advisor may, under certain circumstances, seek to have conflicts or transactions involving conflicts approved in accordance with the governing agreements of the Company. Copies of Part 2A of the Advisor’s Form ADV, which includes additional detail regarding conflicts of interest that are relevant to BlackRock’s investment management business, are available at www.sec.gov and will be provided to current and prospective stockholders upon request.

The foregoing list of potential and actual conflicts of interest does not purport to be a complete enumeration of the conflicts attendant to an investment in the Company. Additional conflicts may exist that are not presently known to the Advisor, BlackRock or their respective affiliates or are deemed immaterial. Prospective investors should consult with their independent advisors before deciding whether to invest in the Company. In addition, as the investment program of the Company develops and changes over time, an investment in the Company may be subject to additional and different actual and potential conflicts of interest.

Our incentive compensation may induce our Advisor to make certain investments, including speculative investments.

The incentive compensation payable by us to the Advisor may create an incentive for the Advisor to make investments on our behalf that are risky or more speculative than would be the case in the absence of such compensation arrangement. The way in which the incentive compensation is determined may encourage the Advisor to increase the use of leverage or take additional risk to increase the return on our investments. Under certain circumstances, the use of leverage may increase the likelihood of default, which would disfavor the holders of our common stock, or of securities convertible into our common stock or warrants representing rights to purchase our common stock or securities convertible into our common stock. A rise in the general level of interest rates can be expected to lead to higher interest rates applicable to certain of our debt investments and may accordingly result in a substantial increase in the amount of incentive compensation payable to the Advisor with respect to our cumulative investment income. Although the incentive compensation is subject to a total return hurdle, the Advisor may have some ability to accelerate the realization of gains to obtain incentive compensation earlier than it otherwise would when it may be in our best interests to not yet realize gains. Our directors monitor our use of leverage and the Advisor’s management of our investment program in the best interests of our common stockholders.

We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds, and, to the extent we so invest, we will bear our ratable share of any such investment company’s expenses, including management and performance fees. We will also remain obligated to pay management and incentive compensation to the Advisor with respect to the assets invested in the securities and instruments of other investment companies. With respect to each of these investments, each of our common stockholders will bear his or her share of our management and incentive compensation as well as indirectly bear the management and performance fees and other expenses of any investment companies in which we invest.

We may be obligated to pay the Advisor incentive compensation payments in excess of the amounts we would have paid if such compensation was subject to clawback arrangements.

The Advisor is entitled to incentive compensation for each fiscal quarter after January 1, 2013 in an amount equal to a percentage of our ordinary income (before deducting incentive compensation) since that date and, separately, a percentage of our realized capital gains (net of realized capital losses and unrealized depreciation) since that date, in each case subject to a cumulative total return requirement. If we pay incentive compensation and thereafter experience additional realized capital losses or unrealized capital depreciation such that we would no longer have been required to provide incentive compensation, we will not be able to recover any portion of the incentive compensation previously paid or distributed because our incentive compensation arrangements do not contain any clawback provisions. As a result, the incentive compensation could exceed 17.5% of our cumulative total return, depending on the timing of unrealized appreciation, net unrealized depreciation and net realized capital losses. For example, part of the incentive compensation payable or distributable by us that relates to our ordinary

income is computed on income that may include interest that has been accrued but not yet received in cash. If a portfolio company defaults on a loan, it is possible that accrued interest previously used in the calculation of the incentive compensation will become uncollectible. Similarly, the income component is measured against a total return limitation that includes unrealized gains. Such gains may not be realized or may be realized at a lower amount. Consequently, we may have paid incentive compensation on income in circumstances where we otherwise would not have done so and with respect to which we do not have a clawback right against the Advisor.

We are dependent upon senior management personnel of the Advisor for our future success, and if the Advisor is unable to retain qualified personnel or if the Advisor loses any member of its senior management team, our ability to achieve our investment objective could be significantly harmed.

The success of the Company is highly dependent on the financial and managerial expertise of the Advisor. The loss of one or more of the voting members of the Investment Committee could have a material adverse effect on the performance of the Company. Although the Advisor and the voting members of the Investment Committee devote a significant amount of their respective efforts to the Company, they actively manage investments for other clients and are not required to (and will not) devote all of their time to the Company’s affairs.

The Advisor can resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.

The Advisor has the right, under our investment management agreement, to resign at any time upon not more than 60 days’ written notice, whether we have found a replacement or not. If the Advisor resigns, we may not be able to find a new investment advisor or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions are likely to be adversely affected and the market price of our common stock may decline. In addition, the coordination of our internal management and investment activities is likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the expertise possessed by the Advisor and its affiliates. Even if we are able to retain comparable management, whether internal or external, the integration of such management and their lack of familiarity with our investment objective may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations.

We may in the future determine to fund a portion of our investments by issuing preferred stock, which would magnify the potential gains or losses and the risks of investing in us in the same manner as our borrowings.

The issuance of shares of preferred stock with dividend or conversion rights, liquidation preferences or other economic terms favorable to the holders of preferred stock could adversely affect the market price for our common stock by making an investment in the common stock less attractive. In addition, preferred stock, which is another form of leverage, has the same risks to our common stockholders as borrowings because the dividends on any preferred stock we issue must be cumulative. Payment of such dividends and repayment of the liquidation preference of preferred stock must take preference over any dividends or other payments to our common stockholders, and holders of preferred stock are not subject to any of our expenses or losses and are not entitled to participate in any income or appreciation in excess of their stated preference(other than convertible preferred stock that converts into common stock).

We may experience fluctuations in our periodic operating results.

We could experience fluctuations in our periodic operating results due to a number of factors, including the interest rates payable on the debt securities we acquire, the default rate on such securities, the level of our expenses (including the interest rates payable on our borrowings), the dividend rates payable on preferred stock we issue, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we

encounter competition in our markets and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

If we fail to maintain our status as a business development company, our business and operating flexibility could be significantly reduced.

We qualify as business development companies under the 1940 Act. The 1940 Act imposes numerous constraints on the operations of business development companies. For example, BDCs are prohibited from making any unqualifying investments unless at least 70% of their total assets are invested in qualifying investments which are primarily securities of private or thinly-traded U.S. companies, cash, cash equivalents, U.S. government securities and other high quality debt investments that mature in one year or less. Failure to comply with the requirements imposed on business development companies by the 1940 Act could cause the SEC to bring an enforcement action against us and/or expose us to claims of private litigants. In addition, any such failure could cause an event of default under the Leverage Program, which could have a materially adverse effect on our business, financial conditions or results of operations.

Because we intend to distribute substantially all of our income to our stockholders to maintain our status as a RIC, we will continue to need additional capital to finance growth. If additional funds are unavailable or not available on favorable terms, our ability to grow will be impaired.

In order for the Company to qualify for the tax benefits available to RICs and to minimize payment of excise taxes, we intend to distribute to our stockholders substantially all of our annual taxable income, except that we may retain certain net capital gains for reinvestment in common interests of SVCP, and treat such amounts as deemed distributions to our stockholders. If we elect to treat any amounts as deemed distributions, we must pay income taxes at the corporate rate on such deemed distributions on behalf of our stockholders and our stockholders will receive a tax credit for such amounts and an increase in basis. A stockholder that is not subject to U.S. federal income tax or otherwise is not required to file a U.S. federal income tax return would be required to file a U.S. federal income tax return on the appropriate form in order to claim a refund for the taxes we paid. As a result of these requirements, we will likely need to raise capital from other sources to grow our business. Unfavorable economic or capital market conditions may increase our funding costs, limit our access to the capital markets or could result in a decision by lenders not to extend credit to us. An inability to successfully access the capital markets could limit our ability to grow our business and fully execute our business strategy and could decrease our earnings, if any.

As a BDC, we are not able to incur senior securities unless after giving effect thereto we meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which includes all of our borrowings, of at least 150%. This means that for every $100 of net assets, we may raise $200 from senior securities, such as borrowings or issuing preferred stock. These requirements limit the amount that we may borrow. On July 13, 2015, we obtained exemptive relief from the SEC to permit us to exclude the debt of TCPC SBIC LP guaranteed by the SBA from our 150% asset coverage test under the 1940 Act. The exemptive relief provides us with increased flexibility under the 150% asset coverage test by permitting the SBIC to borrow up to $150.0 million more than it would otherwise be able to absent the receipt of this exemptive relief.

Because we will continue to need capital to grow our investment portfolio, these limitations may prevent us from incurring debt and require us to raise additional equity at a time when it may be disadvantageous to do so. While we expect we will be able to borrow and to issue additional debt securities and expect that we will be able to issue additional equity securities, we cannot assure you that debt and equity financing will be available to us on favorable terms, or at all. In addition, as a business development company, we generally will not be permitted to issue equity securities priced below net asset value without stockholder approval. If additional funds are not available to us, we could be forced to curtail or cease new investment activities and our net asset value or common stock price could decline.

The highly competitive market in which we operate may limit our investment opportunities.

A number of entities compete with us to make the types of investments that we make. We compete with other BDCs, public and private funds, commercial and investment banks, commercial financing companies, and, to the extent they provide an alternative form of financing, private equity funds. Additionally, because competition for investment opportunities generally has increased among alternative investment vehicles, such as hedge funds, those entities now invest in areas in which they have not traditionally invested, including making investments in middle-market private companies. As a result of these new entrants, competition for investment opportunities intensified over the past several years and may intensify further in the future. Some of our existing and potential competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider a wider variety of investments and establish more relationships than us. Furthermore, many of our competitors are not subject to the regulatory restrictions and valuation requirements that the 1940 Act imposes on us as a BDC and that the Code imposes on us as a RIC. We cannot assure you that the competitive pressures we face will not have a material adverse effect on our business, financial condition and results of operations. Also, as a result of this existing and potentially increasing competition, we may not be able to take advantage of attractive investment opportunities from time to time, and we can offer no assurance that we will be able to identify and make investments that are consistent with our investment objective.

We do not seek to compete primarily based on the interest rates we offer, and we believe that some of our competitors make loans with interest rates that are comparable to or lower than the rates we offer.

We may lose investment opportunities if we do not match our competitors’ pricing, terms and structure. If we match our competitors’ pricing, terms and structure, we may experience decreased net interest income and increased risk of credit loss. As a result of operating in such a competitive environment, we may make investments that are on better terms to our portfolio companies than what we may have originally anticipated, which may impact our return on these investments.

Our board of directors may change our operating policies and strategies without prior notice or stockholder approval.

Our board of directors has the authority to modify or waive our operating policies and strategies without prior notice and without stockholder approval. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results or value of our stock. Nevertheless, the effects could adversely affect our business and impact our ability to make distributions and cause you to lose all or part of your investment.

Risks related to our investments

Our investments are risky and highly speculative, and we could lose all or part of our investment.

We invest primarily in middle-market companies primarily through leveraged loans.

Risks Associated with middle-market companies. Investing in private middle-market companies involves a number of significant risks, including:

•these companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral;

•they typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions and market conditions, as well as general economic downturns;

•they are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on the portfolio company and, in turn, on us;

•they generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position;

•our executive officers, directors and the Advisor may, in the ordinary course of business, be named as defendants in litigation arising from our investments in the portfolio companies;

•changes in laws and regulations, as well as their interpretations, may adversely affect their respective businesses, financial structures or prospects; and

•they may have difficulty accessing the capital markets to meet future capital needs.

Little public information exists about private middle-market companies, and we expect to rely on the Advisor’s investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. These companies and their financial information are not subject to the Sarbanes-Oxley Act of 2002 and other rules that govern disclosures and financial controls of public companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investment.

Lower Credit Quality Obligations. Most of our debt investments are likely to be in lower grade obligations. The lower grade investments in which we invest may be rated below investment grade by one or more nationally-recognized statistical rating agencies at the time of investment or may be unrated but determined by the Advisor to be of comparable quality. Debt securities rated below investment grade are commonly referred to as “junk bonds” and are considered speculative with respect to the issuer’s capacity to pay interest and repay principal. The debt that we invest in typically is not rated prior to our investment by any rating agency, but we believe that if such investments were rated, they would be below investment grade (rated lower than “Baa3” by Moody’s Investors Service, lower than “BBB-” by Fitch Ratings or lower than “BBB-” by Standard & Poor’s). We may invest without limit in debt of any rating, as well as debt that has not been rated by any nationally recognized statistical rating organization.

Investment in lower grade investments involves a substantial risk of loss. Lower grade securities or comparable unrated securities are considered predominantly speculative with respect to the issuer’s ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for lower grade debt tend to be very volatile and are less liquid than investment grade securities. For these reasons, your investment in our company is subject to the following specific risks:

•increased price sensitivity to a deteriorating economic environment;

•greater risk of loss due to default or declining credit quality;

•adverse company specific events are more likely to render the issuer unable to make interest and/or principal payments; and

•if a negative perception of the lower grade debt market develops, the price and liquidity of lower grade securities may be depressed. This negative perception could last for a significant period of time.

Adverse changes in economic conditions are more likely to lead to a weakened capacity of a lower grade issuer to make principal payments and interest payments than an investment grade issuer. The principal amount of lower grade securities outstanding has proliferated in the past decade as an increasing number of issuers have used lower grade securities for corporate financing. An economic downturn could severely affect the ability of highly leveraged issuers to service their debt obligations or to repay their obligations upon maturity. Similarly, downturns in profitability in specific industries could adversely affect the ability of lower grade issuers in that industry to meet their obligations. The market values of lower grade debt tend to reflect individual developments of the issuer to a greater extent than do higher quality investments, which react primarily to fluctuations in the general level of interest rates. Factors having an adverse impact on the market value of lower grade debt may have an adverse effect on our net asset value and the market value of our common stock. In addition, we may incur additional expenses to the extent we are required to seek recovery upon a default in payment of principal of or interest on our portfolio holdings. In certain circumstances, we may be required to foreclose on an issuer’s assets and take possession of its

property or operations. In such circumstances, we would incur additional costs in disposing of such assets and potential liabilities from operating any business acquired.

The secondary market for lower grade debt is unlikely to be as liquid as the secondary market for more highly rated debt, a factor which may have an adverse effect on our ability to dispose of a particular instrument. There are fewer dealers in the market for lower grade securities than investment grade obligations. The prices quoted by different dealers may vary significantly and the spread between the bid and asked price is generally larger than for higher quality instruments. Under adverse market or economic conditions, the secondary market for lower grade debt could contract further, independent of any specific adverse changes in the condition of a particular issuer, and these instruments may become highly illiquid. As a result, we could find it more difficult to sell these instruments or may be able to sell the securities only at prices lower than if such instruments were widely traded. Prices realized upon the sale of such lower rated or unrated securities, under these circumstances, may be less than the prices used in calculating our net asset value.

Since investors generally perceive that there are greater risks associated with lower grade debt of the type in which we may invest a portion of our assets, the yields and prices of such debt may tend to fluctuate more than those for higher rated instruments. In the lower quality segments of the fixed income markets, changes in perceptions of issuers’ creditworthiness tend to occur more frequently and in a more pronounced manner than do changes in higher quality segments of the income securities market, resulting in greater yield and price volatility.

Distressed Debt Securities Risk. At times, distressed debt obligations may not produce income and may require us to bear certain extraordinary expenses (including legal, accounting, valuation and transaction expenses) in order to protect and recover our investment. Therefore, our ability to achieve current income for our stockholders may be diminished. We also will be subject to significant uncertainty as to when and in what manner and for what value the distressed debt we invest in will eventually be satisfied (e.g., through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed debt securities or a payment of some amount in satisfaction of the obligation). In addition, even if an exchange offer is made or plan of reorganization is adopted with respect to distressed debt we hold, there can be no assurance that the securities or other assets received by us in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made. Moreover, any securities received by us upon completion of an exchange offer or plan of reorganization may be restricted as to resale. As a result of our participation in negotiations with respect to any exchange offer or plan of reorganization with respect to an issuer of distressed debt, we may be restricted from disposing of such securities.

Payment-in-kind Interest Risk. Our loans may contain a payment-in-kind, or PIK, interest provision. PIK investments carry additional risk as holders of these types of securities receive no cash until the cash payment date unless a portion of such securities is sold. If the issuer defaults the Company may obtain no return on its investment. The PIK interest, computed at the contractual rate specified in each loan agreement, is added to the principal balance of the loan and recorded as interest income. To avoid the imposition of corporate-level tax on us, this non-cash source of income needs to be paid out to stockholders in cash distributions or, in the event that we determine to do so and in certain cases, in shares of our common stock, even though we have not yet collected and may never collect the cash relating to the PIK interest. As a result, we may have to distribute a taxable stock dividend to account for PIK interest even though we have not yet collected the cash.

Preferred Stock Risk. To the extent we invest in preferred securities, there are special risks, including:

Deferral. Preferred securities may include provisions that permit the issuer, at its discretion, to defer distributions for a stated period without any adverse consequences to the issuer. If we own a preferred security that is deferring its distributions, we may be required to report income for tax purposes although we have not yet received such income.

Subordination. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure in terms of priority to corporate income and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments.

Liquidity. Preferred securities may be substantially less liquid than many other securities, such as common stocks or U.S. Government securities.

Limited Voting Rights. Generally, preferred security holders have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may elect a number of directors to the issuer’s board. Generally, once all the arrearages have been paid, the preferred security holders no longer have voting rights.

Equity Security Risk. We may have exposure to equity securities. Although equity securities have historically generated higher average total returns than fixed-income securities over the long term, equity securities also have experienced significantly more volatility in those returns. The equity securities that we acquire may fail to appreciate and may decline in value or become worthless.

Hedging Transactions. We may employ hedging techniques to minimize currency exchange rate risks or interest rate risks, but we can offer no assurance that such strategies will be effective. If we engage in hedging transactions, we may expose ourselves to risks associated with such transactions. Hedging against a decline in the values of our portfolio positions does not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions decline. Moreover, it may not be possible to hedge against an exchange rate or interest rate fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at an acceptable price. Additionally, engaging in certain hedging transactions could result in adverse tax consequences, e.g. giving rise to income that does not qualify for the 90% annual gross income requirement applicable to RICs.

Because our investments are generally not in publicly traded securities, there will be uncertainty regarding the value of our investments, which could adversely affect the determination of our net asset value.

Our portfolio investments will generally not be in publicly traded securities. As a result, although we expect that some of our equity investments may trade on private secondary marketplaces, the fair value of our direct investments in portfolio companies will often not be readily determinable. Under the 1940 Act, investments for which there are no readily available market quotations, including securities that while listed on a private securities exchange have not actively traded, will be valued at fair value as determined using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors, who also approve in good faith the valuation of such securities. In connection with that approval, the board of directors utilizes the services of an independent valuation firm, which prepares valuation reports on a quarterly basis for most of our portfolio investments that are not publicly traded or for which we do not have readily available market quotations, including securities that while listed on a private securities exchange, have not actively traded. However, the board of directors retains ultimate authority as to the appropriate valuation of each such investment. The types of factors that the board of directors takes into account in approving fair value with respect to such non-traded investments includes, as relevant and, to the extent available, the portfolio company’s earnings, the markets in which the portfolio company does business, comparison to valuations of publicly traded companies, comparisons to recent sales of comparable companies, the discounted value of the cash flows of the portfolio company and other relevant factors. This information may not be available because it is difficult to obtain financial and other information with respect to private companies, and even where we are able to obtain such information, there can be no assurance that it is complete or accurate. Because such valuations are inherently uncertain and may be based on estimates, our determinations of fair value may differ materially from the values that would be assessed if a readily available market for these securities existed. Due to this uncertainty, our fair value determinations with respect to any non-traded investments we hold may cause our net asset value on a given date to materially understate or overstate the value that we may ultimately realize on one or more of our investments. As a result, investors purchasing our securities based on an overstated net asset value may pay a higher price than the value of our investments might warrant. Conversely, investors selling securities based on a net asset value that understates the value of our investments may receive a lower price for their securities than the value of our investments might warrant.

Economic recessions or downturns could impair our portfolio companies and harm our operating results.

Many of our portfolio companies may be susceptible to economic slowdowns or recessions and may be unable to repay our loans during these periods. Therefore, our non-performing assets may increase and the value of our portfolio may decrease during these periods as we are required to record the values of our investments. Adverse economic conditions also may decrease the value of collateral securing some of our loans and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing investments and harm our operating results.

A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. In addition, if one of our portfolio companies were to go bankrupt, even though we or one of our affiliates may have structured our interest in such portfolio company as senior debt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might re-characterize our debt holding as equity and subordinate all or a portion of our claim to claims of other creditors.

We may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.

We do not generally intend to take controlling equity positions in our portfolio companies. To the extent that we do not hold a controlling equity interest in a portfolio company, we are subject to the risk that such portfolio company may make business decisions with which we disagree, and the stockholders and management of such portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity for the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company, and may therefore suffer a decrease in the value of our investments.

In addition, we may not be in a position to control any portfolio company by investing in its debt securities. As a result, we are subject to the risk that a portfolio company in which we invest may make business decisions with which we disagree and the management of such company, as representatives of the holders of their common equity, may take risks or otherwise act in ways that do not serve our interests as debt investors.

Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

The portfolio companies we invest in usually have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt securities in which we invest. By their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before the dates on which we are entitled to receive payments in respect of the debt securities in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution in respect of our investment. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt securities in which we invest, we would have to share any distributions on an equal and ratable basis with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

Additionally, certain loans that we make to portfolio companies may be secured on a second priority basis by the same collateral securing senior secured debt of such companies. The first priority liens on the collateral will secure the portfolio company’s obligations under any outstanding senior debt and may secure certain other future debt that may be permitted to be incurred by the portfolio company under the agreements governing the loans. The

holders of obligations secured by the first priority liens on the collateral will generally control the liquidation of and be entitled to receive proceeds from any realization of the collateral to repay their obligations in full before us. In addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from the sale or sales of all of the collateral would be sufficient to satisfy the loan obligations secured by the second priority liens after payment in full of all obligations secured by the first priority liens on the collateral. If such proceeds are not sufficient to repay amounts outstanding under the loan obligations secured by the second priority liens, then we, to the extent not repaid from the proceeds of the sale of the collateral, will only have an unsecured claim against the portfolio company’s remaining assets, if any.

The rights we may have with respect to the collateral securing the loans we make to our portfolio companies with senior debt outstanding may also be limited pursuant to the terms of one or more intercreditor agreements, including agreements governing “first out” and “last out” structures, that we enter into with the holders of senior debt. Under such an intercreditor agreement, at any time that obligations that have the benefit of the first priority liens are outstanding, any of the following actions that may be taken in respect of the collateral will be in good faith under the direction of the holders of the obligations secured by the first priority liens: the ability to cause the commencement of enforcement proceedings against the collateral; the ability to control the conduct of such proceedings; the approval of amendments to collateral documents; releases of liens on the collateral; and waivers of past defaults under collateral documents. We may not have the ability to control or direct such actions, even if our rights are adversely affected.

When we are a debt or minority equity investor in a portfolio company, we are often not in a position to exert influence on the entity, and other equity holders and management of the company may make decisions that could decrease the value of our portfolio holdings.

When we make debt or minority equity investments, we are subject to the risk that a portfolio company may make business decisions with which we disagree and the other equity holders and management of such company may take risks or otherwise act in ways that do not serve our interests. As a result, a portfolio company may make decisions that could decrease the value of our investment.

We may also make unsecured loans to portfolio companies, meaning that such loans will not benefit from any interest in collateral of such companies. Liens on such portfolio companies’ collateral, if any, will secure the portfolio company’s obligations under its outstanding secured debt and may secure certain future debt that is permitted to be incurred by the portfolio company under its secured loan agreements. The holders of obligations secured by such liens will generally control the liquidation of, and be entitled to receive proceeds from, any realization of such collateral to repay their obligations in full before us. In addition, the value of such collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of such collateral would be sufficient to satisfy our unsecured loan obligations after payment in full of all secured loan obligations. If such proceeds were not sufficient to repay the outstanding secured loan obligations, then our unsecured claims would rank equally with the unpaid portion of such secured creditors’ claims against the portfolio company’s remaining assets, if any.

There may be circumstances in which our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.

If one of our portfolio companies were to go bankrupt, even though we may have structured our interest as senior debt, depending on the facts and circumstances, a bankruptcy court might recharacterize our debt holding as an equity investment and subordinate all or a portion of our claim to that of other creditors. In addition, lenders can be subject to lender liability claims for actions taken by them where they become too involved in the borrower’s business or exercise control over the borrower. For example, we could become subject to a lender’s liability claim, if, among other things, we actually render significant managerial assistance.

Our portfolio companies may be highly leveraged.

Some of our portfolio companies may be highly leveraged, which may have adverse consequences to these companies and to us as an investor. These companies may be subject to restrictive financial and operating covenants and the leverage may impair these companies’ ability to finance their future operations and capital needs. As a result, these companies’ flexibility to respond to changing business and economic conditions and to take advantage of business opportunities may be limited. Further, a leveraged company’s income and net assets will tend to increase or decrease at a greater rate than if borrowed money were not used. Additionally, these companies may not be able to get a full tax deduction for such borrowings.

Our portfolio companies may prepay loans, which prepayment may reduce stated yields in the future if capital returned cannot be invested in transactions with equal or greater expected yields.

Certain of the loans we make are prepayable at any time, some of them of them at no premium to par. We cannot predict when such loans may be prepaid. Whether a loan is prepaid will depend both on the continued positive performance of the portfolio company and the existence of favorable financing market conditions that permit such company to replace existing financing with less expensive capital. As market conditions change frequently, it is unknown when, and if, this may be possible for each portfolio company. In the case of some of these loans, having the loan prepaid early may reduce the achievable yield for the Company in the future below the current yield disclosed for our portfolio if the capital returned cannot be invested in transactions with equal or greater expected yields.

Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

Following an initial investment in a portfolio company, we may make additional investments in that portfolio company as “follow-on” investments in order to: (1) increase or maintain in whole or in part our equity ownership percentage; (2) exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or (3) attempt to preserve or enhance the value of our initial investment.

We may elect not to make follow-on investments or otherwise lack sufficient funds to make those investments. Our failure to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make such follow-on investment because we may not want to increase our concentration of risk, because we prefer other opportunities, because we are inhibited by compliance with BDC requirements or because we desire to maintain our tax status.

Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.

Our investment strategy contemplates that a portion of our investments may be in securities of foreign companies in order to provide diversification or to complement our U.S. investments, although we are required generally to invest at least 70% of our assets in companies organized and having their principal place of business within the U.S. and its possessions. Accordingly, we may invest on an opportunistic basis in certain non-U.S. companies, including those located in emerging markets, that otherwise meet our investment criteria. In regards to the regulatory requirements for business development companies, some of these investments may not qualify as investments in “eligible portfolio companies,” and thus may not be considered “qualifying assets.” “Eligible portfolio companies” generally include U.S. companies that are not investment companies and that do not have securities listed on a national exchange. If at any time less than 70% of our gross assets are comprised of qualifying assets, including as a result of an increase in the value of any non-qualifying assets or decrease in the value of any qualifying assets, we would generally not be permitted to acquire any additional non-qualifying assets until such time as 70% of our then current gross assets were comprised of qualifying assets. We would not be required, however, to dispose of any non-qualifying assets in such circumstances. In addition, investing in foreign companies, and particularly those in emerging markets, may expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the

case in the United States, higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility. These risks may be more pronounced for portfolio companies located or operating primarily in emerging markets, whose economies, markets and legal systems may be less developed. Further, we may have difficulty enforcing our rights as equity holders in foreign jurisdictions. In addition, to the extent we invest in non-U.S. companies, we may face greater exposure to foreign economic developments.

Although it is anticipated that most of our investments will be denominated in U.S. dollars, our investments that are denominated in a foreign currency will be subject to the risk that the value of a particular currency may change in relation to the U.S. dollar. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. We may employ hedging techniques to minimize these risks, but we can offer no assurance that we will, in fact, hedge currency risk or, that if we do, such strategies will be effective. As a result, a change in currency exchange rates may adversely affect our profitability.

Our investments in the software sector are subject to various risks, including intellectual property infringement issues and rapid technological changes, which may adversely affect our performance. Software is our largest industry concentration. Each industry contains certain industry related credit risks.

General risks of companies in the software industry sector include intellectual property infringement liability issues, the inability to protect software and other proprietary technology, extensive competition and limited barriers to entry. Generally, the market for software products is characterized by rapid technological change, evolving industry standards, changes in customer requirements and frequent new product introduction and enhancements. If a portfolio company in the software sector cannot develop new products and enhance its current products in response to technological changes and competing products, its business and operating results will be negatively affected. In addition, there has been a substantial amount of litigation in the software industry relating to intellectual property rights. Regardless of whether claims that a company is infringing patents or other intellectual property have any merit, these claims are time-consuming and costly. Moreover, a software company must monitor the unauthorized use of its intellectual property, which may be difficult and costly. A company’s failure to protect its intellectual property could put it at a disadvantage to its competitors and harm its business, results of operations and financial condition. If a software company in which we invest is unable to navigate these risks, our performance may be adversely affected.

The effect of global climate change may impact the operations of our portfolio companies.

There may be evidence of global climate change. Climate change creates physical and financial risk and some of our portfolio companies may be adversely affected by climate change. For example, the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent weather conditions are affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies’ financial condition, through decreased revenues. Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions.

Risks related to our operations as a BDC

While our ability to enter into transactions with our affiliates is restricted under the 1940 Act, we have received an exemptive order from the SEC permitting certain affiliated investments subject to certain conditions. As a result, the Advisor may face conflicts of interests and investments made pursuant to the exemptive order conditions could in certain circumstances adversely affect the price paid or received by us or the availability or size of the position purchased or sold by us.

Any person that owns, directly or indirectly, 5% or more of our outstanding voting securities or is managed by the Advisor will generally be our affiliate for purposes of the 1940 Act and we are generally prohibited from participating in certain transactions such as co-investing with, or buying or selling any security from or to, such affiliate, absent the prior approval of our independent directors and, in some cases, of the SEC. However, the Advisor and the funds managed by the Advisor have received an exemption from certain SEC regulations prohibiting transactions with affiliates. The exemptive order requires that certain procedures be followed prior to making an investment subject to the order and such procedures could in certain circumstances adversely affect the price paid or received by us or the availability or size of the position purchased or sold by us. The Advisor may also face conflicts of interest in making investments pursuant to the exemptive order. See “Risks related to our business - We have limited operating history as a BDC, and if the Advisor is unable to manage our investments effectively, we may be unable to achieve our investment objective. In addition, the Advisor may face conflicts in allocating investment opportunities between us and certain other entities that could impact our investment returns.”

The 1940 Act also prohibits certain “joint” transactions with certain of our affiliates, which could include investments in the same portfolio company (whether at the same or different times), without prior approval of our independent directors and, in some cases, of the SEC. We are prohibited from buying or selling any security from or to any person who owns more than 25% of our voting securities and from or to certain of that person’s affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC (other than certain limited situations pursuant to current regulatory guidance). The analysis of whether a particular transaction constitutes a joint transaction requires a review of the relevant facts and circumstances relating to the particular transaction. Similar restrictions limit our ability to transact business with our officers or directors or their affiliates.

Regulations governing our operation as a BDC may limit our ability to, and the way in which we raise additional capital, which could have a material adverse impact on our liquidity, financial condition and results of

operations and may hinder the Advisor's ability to take advantage of attractive investment opportunities and to

achieve our investment objective.

Our business requires a substantial amount of capital. We may acquire additional capital from the issuance of additional shares of our common stock or from the additional issuance of senior securities (including debt and preferred stock). However, we may not be able to raise additional capital in the future on favorable terms or at all. We may issue debt securities or preferred securities, which we refer to collectively as “senior securities,” and we may borrow money from banks or other financial institutions, up to the maximum amount permitted by the 1940 Act. The 1940 Act permits us to issue senior securities or incur indebtedness only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 150% after such issuance or incurrence. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to liquidate a portion of our investments and repay a portion of our indebtedness at a time when such sales may be disadvantageous. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we may be required to liquidate a portion of our investments and repay a portion of our indebtedness at a time when such sales may be disadvantageous.

•Senior Securities. As a result of issuing senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss. If we issue preferred securities they would rank “senior” to common stock in our capital structure, preferred stockholders would have separate voting rights and may have rights, preferences or privileges more favorable than those of our common stockholders. Furthermore, the issuance of preferred securities could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for our common stockholders or otherwise be in the best interests of our common stockholders.

•Additional Common Stock. Our Board of Directors may decide to issue common stock to finance our operations rather than issuing debt or other senior securities. As a BDC, we are generally not able to issue our common stock at a price below net asset value, or issue securities convertible into common stock, without first obtaining the required approvals from our stockholders and our independent directors. If our common stock trades at a discount to net asset value, those restrictions could adversely affect our ability to raise equity capital. Except in connection with the exercise of warrants or the conversion of convertible

securities, in any such case the price at which our securities are to be issued and sold may not be less than a price, that in the determination of our board of directors, closely approximates the market value of such securities at the relevant time. We may also make rights offerings to our stockholders. If we raise additional capital by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our common stockholders at that time would decrease, and our common stockholders may experience dilution.

Changes in the laws or regulations governing our business or the business of our portfolio companies, or changes in the interpretations thereof or newly enacted legislation and regulations, and any failure by us or our portfolio companies to comply with these laws or regulations, could have a material adverse effect on our business, results of operations or financial condition of us or our portfolio companies.

We are subject to changing rules and regulations of federal and state governments, as well as the stock exchange in which our common stock is listed. These entities, including the Public Company Accounting Oversight Board, the SEC and The Nasdaq Global Select Market, have issued a significant number of new and increasingly complex requirements and regulations over the course of the last several years and continue to develop additional regulations.

Changes in the laws or regulations or the interpretations of the laws and regulations that govern BDCs, RICs or non-depository commercial lenders could significantly affect our operations and our cost of doing business. We are subject to federal, state and local laws and regulations and are subject to judicial and administrative decisions that affect our operations, including our loan originations, maximum interest rates, fees and other charges, disclosures to portfolio companies, the terms of secured transactions, collection and foreclosure procedures and other trade practices. If these laws, regulations or decisions change, or if we expand our business into jurisdictions that have adopted more stringent requirements than those in which we currently conduct business, we may have to incur significant expenses in order to comply, or we might have to restrict our operations. In addition, if we do not comply with applicable laws, regulations and decisions, we may lose licenses needed for the conduct of our business and may be subject to civil fines and criminal penalties, any of which could have a material adverse effect upon our business, results of operations of financial condition.

If we do not invest a sufficient portion of our assets in qualifying assets, we could be precluded from investing in certain assets or could be required to dispose of certain assets, which could have a material adverse effect on our business, financial condition and results of operations.

As a BDC, we are prohibited from acquiring any assets other than “qualifying assets” unless, at the time of and after giving effect to such acquisition, at least 70% of our total assets are qualifying assets. As of December 31, 2020, approximately $127.5 million, or approximately 7.7%, of our adjusted total assets were not “qualifying assets.” If we do not invest a sufficient portion of our assets in qualifying assets, we will be prohibited from investing in additional non-qualifying assets, which could have a material adverse effect on our business, financial condition and results of operations. Similarly, these rules could prevent us from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or could require us to dispose of investments at inopportune times in order to come into compliance with the 1940 Act. If we need to dispose of these investments quickly, it may be difficult to dispose of such investments on favorable terms. For example, we may have difficulty in finding a buyer and, even if a buyer is found, we may have to sell the investments at a substantial loss.

We will be subject to corporate-level U.S. federal income tax on all of our income if we are unable to qualify as a RIC under the Code, which could have a material adverse effect on our financial performance.

Although we are currently qualified as a RIC, no assurance can be given that we will be able to maintain RIC status. To maintain RIC status and be relieved of U.S. federal income taxes on income and gains distributed to its stockholders, we generally must meet the annual distribution, source-of-income and asset diversification requirements described below. In addition, our Leverage Program prohibits us from making distributions if doing so causes us to fail to maintain the asset coverage ratios stipulated by the 1940 Act or the Leverage Program.

To qualify as a RIC under the Code, we generally must meet certain source-of-income, asset diversification and annual distribution requirements. The annual distribution requirement for a RIC will generally be satisfied if we distribute at least 90% of our ordinary income and net short-term capital gain in excess of net long-term capital loss, if any, to our stockholders. Since we use debt financing, we are subject to certain asset coverage ratio requirements and other financial covenants under the terms of the Leverage Program, and we are, in some circumstances, also subject to similar requirements under the 1940 Act. The requirements could, under certain circumstances, restrict us from making distributions necessary to qualify as a RIC. If we are unable to obtain cash from other sources, we may fail to qualify as a RIC and, thus, may be subject to corporate-level income tax. To qualify as a RIC, we generally must also meet certain asset diversification requirements at the end of each calendar quarter. Failure to meet these tests may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because we anticipate that most of our investments will be in private companies, any such dispositions could be made at disadvantageous prices and may result in substantial losses.

If we fail to qualify as a RIC for any reason and become subject to corporate-level income tax, the resulting corporate-level income taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions.

We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

For U.S. federal income tax purposes, we may include in income certain amounts that we have not yet received in cash, such as original issue discount, which may arise if we receive warrants in connection with the making of a loan or possibly in other circumstances, or PIK interest, which represents contractual interest added to the loan balance and due in the future, often only at the end of the loan. Such original issue discount, which could be significant relative to our overall investment activities, or increases in loan balances as a result of PIK arrangements are generally included in our taxable income before we receive any corresponding cash payments. We also may be required to include in income certain other amounts that we do not receive in cash. Similarly, newly enacted tax legislation contains rules that may in certain other circumstances require the recognition of non-cash taxable income or may limit the deductibility of certain of our cash expenses.

Since we may recognize taxable income before or without receiving cash representing such income or may be subject to limitations on the deductibility of our income, if we invest to a substantial extent in non-cash paying debt instruments we may have difficulty meeting the tax requirement to distribute at least 90% of our ordinary income and net short-term capital gain in excess of net long-term capital loss, if any, to maintain our status as a RIC. Accordingly, we may have to sell some of our investments at times we would not consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements.

There is a risk that you may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital.

We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this filing. Due to the asset coverage test applicable to us under the 1940 Act as a BDC, we may be limited in our ability to make distributions. Additionally, a portion of such distributions may include a return of stockholder capital. Distributions in excess of our current and accumulated earnings and profits are considered nontaxable distributions and serve to reduce the basis of our shares in the hands of the common stockholders rather than being currently taxable. As a result of the reduction of the basis of our shares, common stockholders may incur additional capital gains taxes or may have lower capital losses.

If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. Any failure to implement required new or improved controls, or difficulties encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing by us conducted in connection with Section 404 of the Sarbanes-Oxley Act, or the subsequent testing by our independent registered public accounting firm (when undertaken, as noted below), may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses or that may require prospective or retroactive changes to our consolidated financial statements or identify other areas for further attention or improvement. Inferior internal controls could also cause investors and lenders to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

We may experience cyber-security incidents and are subject to cyber-security risks.

Our business operations rely upon secure information technology systems for data processing, storage and reporting. Despite careful security and controls design, implementation and updating, our information technology systems could become subject to cyber-attacks. Cyber-attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (i.e., efforts to make network services unavailable to intended users). Network, system, application and data breaches could result in operational disruptions or information misappropriation, which could have a material adverse effect on our business, results of operations and financial condition.

Cyber-security failures or breaches by the Advisor, any sub-adviser(s) and other service providers (including, but not limited to, accountants, custodians, transfer agents and administrators), and the issuers of securities in which we invest, have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, interference with our ability to calculate our net asset value, impediments to trading, the inability of our stockholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. While we have established a business continuity plan in the event of, and risk management systems to prevent, such cyberattacks, there are inherent limitations in such plans and systems including the possibility that certain risks have not been identified. Furthermore, we cannot control the cyber security plans and systems put in place by our service providers and issuers in which we invest. We and our stockholders could be negatively impacted as a result.

The failure in cyber-security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.

The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in our disaster recovery systems, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on our results of operations and financial condition, particularly if those events affect our computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of our managers were unavailable in the event of a disaster, our ability to effectively conduct our business could be severely compromised.

We depend heavily upon computer systems to perform necessary business functions. Despite our implementation of a variety of security measures, our computer systems could be subject to cyber-attacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. Like other companies, we may experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our operations, which could result in

damage to our reputation, financial losses, litigation, increased costs, regulatory penalties and/or customer dissatisfaction or loss.

We are dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to pay dividends.

Our business is dependent on our and third parties’ communications and information systems. Further, in the ordinary course of our business we or the Advisor may engage certain third party service providers to provide us with services necessary for our business. Any failure or interruption of those systems or services, including as a result of the termination or suspension of an agreement with any third-party service providers, could cause delays or other problems in our business activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and adversely affect our business. There could be:

•sudden electrical or telecommunications outages;

•natural disasters such as earthquakes, tornadoes and hurricanes;

•disease pandemics;

•events arising from local or larger scale political or social matters, including terrorist acts; and

•cyber-attacks.

These events, in turn, could have a material adverse effect on our operating results and negatively affect the market price of our common stock and our ability to pay dividends to our stockholders.

Risks Related to Our Common Stock and Other Securities

Our shares of common stock have traded at a discount from net asset value and may do so again in the future, which could limit our ability to raise additional equity capital.

Shares of closed-end investment companies, including business development companies, may trade at a market discount from net asset value. This characteristic of closed-end investment companies and business development companies is separate and distinct from the risk that our net asset value per share may decline. In the past, the stocks of BDCs as an industry, including shares of our common stock, have traded below net asset value and at historic lows as a result of concerns over liquidity, leverage restrictions and distribution requirements. When our common stock is trading below its net asset value per share, we will generally not be able to issue additional shares of our common stock at its market price without first obtaining approval for such issuance from our stockholders and our independent directors. At our annual meeting of stockholders held on May 27, 2020, subject to certain conditions and Board of Directors determinations, our stockholders approved our ability to sell or otherwise issue shares of our common stock at a price below its then current net asset value per share for a 12-month period expiring on the anniversary of the date of stockholder approval, unless approved again by our stockholders for another 12-month period.

Investing in our common stock may involve an above average degree of risk.

The investments we make in accordance with our investment objective may result in a higher amount of risk than alternative investment options and a higher risk of volatility or loss of principal. Our investments in portfolio companies involve higher levels of risk, and therefore, an investment in our common stock may not be suitable for someone with lower risk tolerance.

The market price of our common stock may fluctuate significantly.

The market price and liquidity of the market for our common stock may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include:

•volatility in the market price and trading volume of securities of BDCs or other companies in the sector in which we operate, which are not necessarily related to the operating performance of these companies;

•price and volume fluctuations in the overall stock market from time to time;

•changes in law, regulatory policies or tax guidelines, particularly with respect to SBICs, RICs or BDCs;

•our loss of RIC status or the SBIC’s loss of SBIC status;

•changes in earnings or variations in operating results;

•changes in the value of our portfolio of investments;

•any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;

•departure of key personnel from the Advisor;

•operating performance of companies comparable to us;

•short-selling pressure with respect to shares of our common stock or BDCs generally;

•future sales of our securities convertible into or exchangeable or exercisable for our common stock or the conversion of such securities;

•uncertainty surrounding the strength of the U.S. economic recovery;

•general economic trends and other external factors; and

•loss of a major funding source.

Stockholders will likely incur dilution if we sell or otherwise issue shares of our common stock or securities to subscribe for or convertible into shares of our common stock at prices below the then current net asset value per share of our common stock.

We generally seek approval from our stockholders so that we have the flexibility to issue up to 25% of our then outstanding shares of our common stock immediately prior to any such sale at a price below net asset value. Pursuant to approval granted at our annual of stockholders held on May 27, 2020, we currently are permitted to sell or otherwise issue shares of our common stock at a price below net asset value, subject to certain limitations and determinations that must be made by our board of directors. Such stockholder approval expires on May 27, 2021. We also received authority from our stockholders at our 2013 annual meeting to issue warrants, options or other rights to subscribe for, convert to, or purchase shares of our common stock, which may include convertible preferred stock and convertible debentures. This authorization has no expiration date.

In addition, we may also issue shares of common stock in certain limited circumstances under our dividend reinvestment plan and under interpretive advice issued by the Internal Revenue Service, and we may also issue subscription rights exercisable for shares of common stock at a price below net asset value per share in accordance with the requirements of the 1940 Act. Any sale or other issuance of shares of our common stock at a price below net asset value per share would result in an immediate dilution to the net asset value per share. This dilution would occur as a result of a proportionately greater decrease in a stockholder’s interest in our earnings and assets and voting interest in us than the increase in our assets resulting from such issuance. Because the number of shares of common stock that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted. Such effects may be material, and we undertake to describe material risks and dilutive effects of any offering that we make at a price below our then current net asset value in the future in a prospectus supplement issued in connection with any such offering. We cannot predict whether shares of our common stock will trade above, at or below our net asset value. If we were to sell our common stock at prices below net asset value for a sustained period of time, such sales may result in an increased risk of our common stock trading at a discount to its net asset value.

Terms relating to redemption may materially adversely affect your return on any debt securities that we may issue.

If your debt securities are redeemable at our option, we may choose to redeem your debt securities at times when prevailing interest rates are lower than the interest rate paid on your debt securities. In addition, if your debt securities are subject to mandatory redemption, we may be required to redeem your debt securities also at times when prevailing interest rates are lower than the interest rate paid on your debt securities. In this circumstance, you

may not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as your debt securities being redeemed.

Our credit ratings may not reflect all risks of an investment in our debt securities.

Our credit ratings are an assessment by third parties of our ability to pay our obligations. Consequently, real or anticipated changes in our credit ratings will generally affect the market value of our debt securities. Our credit ratings, however, may not reflect the potential impact of risks related to market conditions generally or other factors discussed above on the market value of or trading market for the publicly issued debt securities.

Item 1B. Unresolved Staff Comments

None

Item 2. Properties

We do not own any real estate or other physical properties materially important to our operation. Our executive offices are located at 2951 28th Street Suite 1000, Santa Monica, CA 90405, and are provided by the Advisor in accordance with the terms of the Administration Agreement. We believe that our office facilities are suitable and adequate for our business as it is contemplated to be conducted.

Item 3. Legal Proceedings

We and the Advisor are not currently subject to any material pending or threatened legal proceedings against us. From time to time, we may be a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition or results of operations.

Item 4: Mine Safety Disclosures.

Not applicable.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Price Range of Common Stock

Our common stock began trading on April 5, 2012 and is currently traded on The Nasdaq Global Select Market under the symbol “TCPC.” The following table lists the high and low closing sale price for our common stock, the closing sale price as a percentage of net asset value, or NAV, and quarterly distributions per share in each fiscal quarter for the years ended December 31, 2020 and 2019. Our common stock historically has traded at prices both above and below its net asset value. There can be no assurance, however, that such premium or discount ranges, as applicable, to net asset value will be maintained.


							Premium/ (Discount) of High Sales Price to NAV(3)		Premium/ (Discount) of Low Sales Price to NAV(3)		Declared Dividends

			Stock Price
	NAV(1)		High(2)		Low(2)
Fiscal year ended December 31, 2020
First Quarter	$	11.76	$	14.75	$	4.40	25.4	%	(62.6)	%	$	0.36
Second Quarter	12.21		10.82		5.22		(11.4)	%	(57.2)	%	0.36
Third Quarter	12.71		10.28		8.75		(19.1)	%	(31.2)	%	0.30
Fourth Quarter	13.24		12.37		9.22		(6.6)	%	(30.4)	%	0.30

Fiscal year ended December 31, 2019
First Quarter	$	14.18	$	14.87	$	13.21	4.9	%	(6.8)	%	$	0.36
Second Quarter	13.64		14.77		14.05		8.3	%	3.0	%	0.36
Third Quarter	13.59		14.32		13.16		5.4	%	(3.2)	%	0.36
Fourth Quarter	13.21		14.48		13.15		9.6	%	(0.5)	%	0.36

(1) NAV per share is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low sales prices. The NAVs shown are based on outstanding shares at the end of each period.

(2) The High/Low Stock Price is calculated as of the closing price on a given day in the applicable quarter.

(3) Calculated as the respective High/Low Stock Price minus the quarter end NAV, divided by the quarter end NAV.

As of February 24, 2021, we had approximately 30,000 beneficial owners whose shares are held in the names of the brokers, dealers and clearing agencies, and we had 21 stockholders of record. On February 24, 2021, the last reported sales price of our common stock was $12.62 per share.

The table below sets forth each class of our outstanding securities as of February 24, 2021.

Title of Class

Amount Authorized

Amount Held by Registrant or for its Account

Amount Outstanding

Common Stock

200,000,000

—

57,767,264

Distributions

Our quarterly dividends and distributions to common stockholders are recorded on the ex-dividend date and are determined by our board of directors. Distributions are declared considering our estimate of annual taxable income available for distribution to stockholders and the amount of taxable income carried over from the prior year for distribution in the current year. We do not have a policy to pay distributions at a specific level and expect to continue to distribute substantially all of our taxable income. Changes in investment results or focus, expense levels and other factors may have an effect on the amount of distributions we pay in the future. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

The following table summarizes the Company’s dividends declared and paid for the year ended December 31, 2020:

Date Declared

Record Date

Payment Date

Type

Amount Per Share

Total Amount

February 26, 2020

March 17, 2020

March 31, 2020

Regular

0.36

21,155,913

May 11, 2020

June 16, 2020

June 30, 2020

Regular

0.36

20,796,088

August 6, 2020

September 16, 2020

September 30, 2020

Regular

0.30

17,330,179

November 2, 2020

December 17, 2020

December 31, 2020

Regular

0.30

17,330,179

1.32

76,612,359

The following table summarizes the Company’s dividends declared and paid for the year ended December 31, 2019:

Date Declared

Record Date

Payment Date

Type

Amount Per Share

Total Amount

February 28, 2019

March 15, 2019

March 29, 2019

Regular

0.36

21,155,619

May 8, 2019

June 14, 2019

June 28, 2019

Regular

0.36

21,155,688

August 8, 2019

September 16, 2019

September 30, 2019

Regular

0.36

21,155,760

November 6, 2019

December 17, 2019

December 31, 2019

Regular

0.36

21,155,837

1.44

84,622,904

Tax characteristics of all dividends are reported to stockholders on Form 1099-DIV or Form 1042-S after the end of the calendar year.

We have elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain favorable RIC tax treatment, we must distribute annually to our stockholders at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In order to avoid certain excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum of:

• 98% of our ordinary income (not taking into account any capital gains or losses) for the calendar year;

• 98.2% of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for the one-year period generally ending on October 31 of the calendar year; and

• certain undistributed amounts from previous years on which we paid no U.S. federal income tax.

term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment.

We may not be able to achieve operating results that will allow us to make dividends and distributions at a specific level or to increase the amount of these dividends and distributions from time to time. Also, we may be limited in our ability to make dividends and distributions due to the asset coverage test applicable to us as a BDC under the 1940 Act and due to provisions in our existing and future credit facilities. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of favorable RIC tax treatment. In addition, in accordance with U.S. generally accepted accounting principles and tax regulations, we include in income certain amounts that we have not yet received in cash, such as PIK interest, which represents contractual interest added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC and may be subject to an excise tax.

In order to satisfy the annual distribution requirement applicable to RICs, we have the ability to declare a large portion of a dividend in shares of our common stock instead of in cash. As long as a portion of such dividend is paid in cash (which portion can be as low as 10% for dividends paid with respect to any taxable year) and certain requirements are met, the entire distribution would be treated as a dividend for U.S. federal income tax purposes.

COMPARISON OF CUMULATIVE TOTAL RETURN AMONG BLACKROCK TCP CAPITAL CORP., S&P 500 TOTAL RETURN INDEX AND WELLS FARGO BUSINESS DEVELOPMENT COMPANY INDEX

Total Return Performance

NOTES: Assumes $100 invested April 4, 2012 in BlackRock TCP Capital Corp., the S&P 500 Total Return Index, the S&P LSTA Leveraged Loan Index and the Wells Fargo Business Development Company Index. Assumes all dividends are reinvested on the respective dividend payment dates without commissions.

Fees and Expenses

The following table is intended to assist you in understanding the costs and expenses that an investor in a potential offering of our common stock would bear directly or indirectly. The following table and example should not be considered a representation of our future expenses. Actual expenses may be greater or less than shown. The following table and example represent our best estimate of the fees and expenses that we expect to incur during the next twelve months.


Stockholder Transaction Expenses
Sales Load (as a percentage of offering price)		%	(1)
Offering Expenses (as a percentage of offering price)		%	(2)
Dividend Reinvestment Plan Fees	—	(3)
Total Stockholder Transaction Expenses (as a percentage of offering price)
Annual Expenses (as a Percentage of Net Assets Attributable to Common Stock)(4)
Base Management Fees	3.06	%	(5)
Incentive Compensation Payable Under the Investment Management Agreement	1.96	%	(6)
Interest Payments on Borrowed Funds	4.4	%	(7)
Other Expenses	1.02	%	(8)
Total Annual Expenses	10.44	%

(1) In the event that securities are sold to or through underwriters, a corresponding prospectus supplement will disclose the applicable sales load.

(2) The related prospectus supplement will disclose the estimated amount of offering expenses, the offering price and the estimated offering expenses borne by us as a percentage of the offering price.

(3) The expenses of the dividend reinvestment plan are included in “other expenses.”

(4) The “net assets attributable to common stock” used to calculate the percentages in this table is our average net assets of $735.6 million for the twelve month period ended December 31, 2020.

(5) The base management fee is calculated at an annual rate of 1.5% of our total assets (excluding cash and cash equivalents) payable quarterly in arrears; provided, however, that, effective as of February 9, 2019, the base management fee is calculated at an annual rate of 1.0% of our total assets (excluding cash and cash equivalents) that exceed an amount equal to 200% of the net asset value of the Company. The percentage shown in the table, which assumes all capital and leverage is invested at the maximum level, is calculated by determining the ratio that the aggregate base management fee bears to our net assets attributable to common stock and not total assets. We make this conversion because all of our interest is indirectly borne by our common stockholders. If we borrow money or issue preferred stock and invest the proceeds other than in cash and cash equivalents, our base management fees will increase. The base management fee for any partial quarter is appropriately prorated.

(6) Under the current investment management agreement, dated February 9, 2019, the incentive compensation equals the sum of (1) 20% of all ordinary income since January 1, 2013 through February 8, 2019 and 17.5% thereafter and (2) 20% of all net realized capital gains (net of any net unrealized capital depreciation) since January 1, 2013 through February 8, 2019 and 17.5% thereafter, less ordinary income incentive compensation and capital gains incentive compensation previously paid. However, incentive compensation will only be paid to the extent the cumulative total return of the Company after incentive compensation and including such payment would equal or exceed a 7% annual return on daily weighted average contributed common equity. The incentive compensation is payable quarterly in arrears (or upon termination of the Advisor as the investment manager, as of the termination date).

For assets held on January 1, 2013, capital gain, loss and depreciation are measured on an asset by asset basis against the value thereof as of December 31, 2012. The capital gains component is paid or distributed in full prior to payment or distribution of the ordinary income component.

(7) “Interest Payments on Borrowed Funds” represents interest and fees estimated to be accrued on the Operating Facility and Funding Facility II and amortization of debt issuance costs, and assumes the Operating Facility and Funding Facility II are fully drawn (subject to asset coverage limitations under the 1940 Act) and that the interest

rate on the debt issued (i) under the Operating Facility is the rate in effect as of December 31, 2020, which was 2.14% and (ii) under the Funding Facility II is the rate in effect as of December 31, 2020, which was 2.15%. “Interest Payments on Borrowed Funds” additionally represents interest and fees estimated to be accrued on our $140.0 million in aggregate principal amount of our 4.625% convertible senior unsecured notes due 2022, which bear interest at an annual rate of 4.625%, payable semi-annually, and are convertible into shares of our common stock under certain circumstances, our $175.0 million in aggregate principal amount of notes due 2022, which bear interest at an annual rate of 4.125%, payable semi-annually, our $250.0 million in aggregate principal amount of notes due 2024, which bear interest at an annual rate of 3.90%, payable semi-annually, and our $150.0 million of committed leverage from the SBA, which SBA debentures, once drawn, bear an interim interest rate of LIBOR plus 30 basis points, are non-recourse and may be prepaid at any time without penalty, and assumes that the committed leverage from the SBA is fully drawn. When we borrow money or issue preferred stock, all of our interest and preferred stock dividend payments are indirectly borne by our common stockholders.

(8) “Other Expenses” includes our estimated overhead expenses, including expenses of our Advisor reimbursable under the investment management agreement and of the Administrator reimbursable under the administration agreement except for certain administration overhead costs which are not currently contemplated to be charged to us. Such expense estimate, other than the Administrator expenses, is based on actual other expenses for the twelve month period ended December 31, 2020.

Example

The following example demonstrates the projected dollar amount of total cumulative expenses (including stockholder transaction expenses and annual expenses) that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed that our annual operating expenses remain at the levels set forth in the table above.


	1 year		3 years		5 years		10 years
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return resulting entirely from net investment income(1)	$	107	$	261	$	405	$	722
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return resulting entirely from net realized capital gains(2)	$	107	$	261	$	405	$	722

(1) All incentive compensation (on both net investment income and net realized gains) is subject to a total return hurdle of 7%. Consequently, no incentive compensation would be incurred in this scenario.

(2) All incentive compensation (on both net investment income and net realized gains) is subject to a total return hurdle of 7%. Consequently, no incentive compensation would be incurred in this scenario. Assumes no unrealized capital depreciation.

While the example assumes, as required by the SEC, a 5% annual return, our performance will vary and may result in a return greater or less than 5%. There is no incentive compensation either on income or on capital gains under our investment management agreement assuming a 5% annual return and therefore it is not included in the example. If we achieve sufficient returns on our investments, including through the realization of capital gains, to trigger an incentive compensation of a material amount, our distributions to our common stockholders and our expenses would likely be higher. In addition, the example assumes reinvestment of all dividends and distributions at net asset value.

Item 6. Selected Financial Data

The selected consolidated financial and other data below reflects the consolidated historical operations of the Company.

The selected consolidated financial data below for the years ended December 31, 2020, 2019, 2018, 2017 and 2016 have been derived from the consolidated financial statements that were audited by our independent registered public accounting firm. The following selected financial data should be read in conjunction with our financial statements and related notes thereto.


	Fiscal Year Ended December 31,
	2020				2019				2018				2017				2016
Performance Data:
Interest income	$	161,658,217			$	191,584,009			$	189,147,814		$	$	173,527,345			$	145,018,414
Dividend income	2,473,865				2,392,274				750,714				254,025				—
Lease income	38,136				297,827				297,827				294,366				1,571,280
Other income	7,933,508				891,805				302,829				1,893,764				1,591,071
Total investment income	172,103,726				195,165,915				190,499,184				175,969,500				148,180,765
Interest and other debt expenses	41,237,035				46,398,795				40,468,761				33,091,143				25,192,990
Management and advisory fees	23,806,418				24,860,910				24,179,376				21,560,868				18,881,786
Incentive fee	15,314,201				20,307,759				23,346,164				N/A			*	N/A			*
Other expenses	8,524,090				8,740,358				9,027,528				7,879,489				8,283,156
Total expenses	88,881,744				100,307,822				97,021,829				62,531,500				52,357,932
Net investment income before taxes	83,221,982				94,858,093				93,477,355				113,438,000				95,822,833
Excise tax expense	—				—				92,700				36,380				569,511
Net investment income	83,221,982				94,858,093				93,384,655				113,401,620				95,253,322
Net realized and unrealized gains (losses)	(9,410,581)				(64,277,304)				(47,908,773)				(22,790,283)				114,502
Realized loss on extinguishment of debt	(2,436,913)				—				—				—				—
Incentive allocation	N/A			*	N/A			*	N/A			*	(22,680,323)				(19,050,665)
Net increase in net assets applicable to common shareholders resulting from operations	$	71,374,488			$	30,580,789			$	45,475,882			$	67,931,014			$	76,317,159
Per Share Data (at the end of the period):
Net increase in net assets from operations	$	1.23			$	0.52			$	0.77			$	1.19			$	1.50
Distributions declared per share	(1.32)				(1.44)				(1.44)				(1.44)				(1.44)
Average weighted shares outstanding for the period	57,991,233				58,766,362				58,815,216				57,000,658				50,948,035
Assets and Liabilities Data:
Investments	$	1,629,564,482			$	1,649,506,895			$	1,597,285,790			$	1,514,532,703			$	1,314,969,870
Other assets	42,422,673				72,562,301				62,249,899				114,889,665				72,628,591
Total assets	1,671,987,155				1,722,069,196				1,659,535,689				1,629,422,368				1,387,598,461
Debt, net of unamortized issuance costs	850,016,199				907,802,387				805,202,192				725,200,281				571,658,862
Other liabilities	56,984,378				37,948,423				23,858,770				33,493,961				25,003,608
Total liabilities	907,000,577				945,750,810				829,060,962				758,694,242				596,662,470
Net assets	$	764,986,578			$	776,318,386			$	830,474,727			$	870,728,126			$	790,935,991
Investment Activity Data:
No. of portfolio companies at period end	96				105				95				95				90
Acquisitions	$	460,153,100			$	700,024,114			$	634,002,472			$	865,427,957			$	587,219,129
Sales, repayments, and other disposals	$	480,719,625			$	596,374,086			$	512,795,715			$	655,674,365			$	473,457,512
Weighted-average effective yield of debt portfolio at end of period	9.6		%		10.3		%		11.4		%		11.0		%		10.9		%

* Prior to January 1, 2018, Incentive fees were reflected as Incentive allocation and distribution to the General Partner.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with our unaudited consolidated financial statements and related notes thereto appearing elsewhere in this annual report on Form 10-K. Some of the statements in this report (including in the following discussion) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or the future performance or financial condition of BlackRock TCP Capital Corp. (the “Company,” “we,” “us” or “our”), formerly known as TCP Capital Corp. The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:

•our, or our portfolio companies’, future business, operations, operating results or prospects;

•the return or impact of current and future investments;

•the impact of a protracted decline in the liquidity of credit markets on our business;

•the impact of fluctuations in interest rates on our business;

•the impact of changes in laws or regulations governing our operations or the operations of our portfolio companies;

•our contractual arrangements and relationships with third parties;

•the general economy and its impact on the industries in which we invest;

•the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives;

•our expected financings and investments;

•the adequacy of our financing resources and working capital;

•the ability of our investment advisor to locate suitable investments for us and to monitor and administer our investments;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•the timing, form and amount of any dividend distributions; and

•our ability to maintain our qualification as a regulated investment company and as a business development company.

We use words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “could,” “may,” “plan” and similar words to identify forward-looking statements. The forward looking statements contained in this quarterly report involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth as “Risk Factors” in this report.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

The Company is a Delaware corporation formed on April 2, 2012 and is an externally managed, closed-end, non-diversified management investment company. The Company was formed through the conversion of a pre-existing closed-end investment company. The Company elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to seek to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. We invest primarily in the debt of middle-market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Such investments may include an equity component, and, to a lesser extent, we may make equity investments directly. Certain investment operations are conducted through the Company’s wholly-owned subsidiaries, Special Value Continuation Partners LLC, a Delaware limited liability company (“SVCP”), TCPC Funding I, LLC (“TCPC Funding”), TCPC Funding II, LLC ("TCPC Funding II") and TCPC SBIC, LP (the “SBIC”). SVCP was organized as a limited partnership and had elected to be regulated as a BDC under the 1940 Act through July 31, 2018. On August 1, 2018, SVCP withdrew its election to be regulated as a BDC under the 1940 Act and withdrew the registration of its common limited partner interests under Section 12(g) of the Securities Exchange Act of 1934 and, on August 2, 2018, terminated its general partner, Series H of SVOF/MM, LLC, and converted to a Delaware limited liability company. Series H of SVOF/MM, LLC (“SVOF/MM”) serves as the administrator (the “Administrator”) of the Company. The managing member of SVOF/MM is Tennenbaum Capital Partners, LLC (the “Advisor”), which serves as the investment manager to the Company, TCPC Funding, TCPC Funding II and the SBIC. On August 1, 2018, the Advisor merged with and into a wholly owned subsidiary of BlackRock Capital Investment Advisors, LLC, an indirect wholly owned subsidiary of BlackRock, Inc. with the Advisor as the surviving entity. The SBIC was organized as a Delaware limited partnership in June 2013. On April 22, 2014, the SBIC received a license from the United States Small Business Administration (the “SBA”) to operate as a small business investment company under the provisions of Section 301(c) of the Small Business Investment Act of 1958.

The Company has elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes. As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements. TCPC Funding, TCPC Funding II and the SBIC have elected to be treated as partnerships for U.S. federal income tax purposes. SVCP was treated as a partnership for U.S. federal income tax purposes through August 1, 2018 and upon its conversion to a limited liability company on August 2, 2018, and thereafter is and will be treated as a disregarded entity.

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”), $140.0 million in convertible senior unsecured notes issued by the Company maturing in 2022 (the “2022 Convertible Notes”), $175.0 million in senior unsecured notes issued by the Company maturing in 2022 (the “2022 Notes”), $250.0 million in senior unsecured notes issued by the Company maturing in 2024 (the “2024 Notes”) and $150.0 million in committed leverage from the SBA (the “SBA Program” and, together with the Operating Facility, Funding Facility II, the 2022 Convertible Notes, the 2022 Notes and the 2024 Notes, the “Leverage Program”). Prior to being replaced by Funding Facility II on August 4, 2020, leverage included $300.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding (“Funding Facility I”). Prior to its maturity on December 15, 2019, leverage also included convertible senior unsecured notes due December 2019 issued by the Company (the “2019 Convertible Notes”).

To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders generally at least 90% of our investment company taxable income, as defined by the Internal Revenue Code of 1986, as amended, for each year. Pursuant to this election, we generally will not have to pay corporate level taxes on any income that we distribute to our stockholders provided that we satisfy those requirements.

Investments

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity, the general economic environment and the competitive environment for the types of investments we make.

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 December 31, 2020, 92.3% of our total assets were invested in qualifying assets.

Revenues

We generate revenues primarily in the form of interest on the debt we hold. We also generate revenue from dividends on our equity interests, capital gains on the disposition of investments, and certain lease, fee, and other income. Our investments in fixed income instruments generally have an expected maturity of three to five years, although we have no lower or upper constraint on maturity. Interest on our debt investments is generally payable quarterly or semi-annually. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt investments and preferred stock investments may defer payments of cash interest or dividends or PIK. Any outstanding principal amount of our debt investments and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of prepayment fees, commitment, origination, structuring or due diligence fees, end-of-term or exit fees, fees for providing significant managerial assistance, consulting fees and other investment related income.

Expenses

Our primary operating expenses include the payment of a base management fee and, depending on our operating results, incentive compensation, expenses reimbursable under the management agreement, administration fees and the allocable portion of overhead under the administration agreement. The base management fee and incentive compensation remunerates the Advisor for work in identifying, evaluating, negotiating, closing and monitoring our investments. Our administration agreement with the Administrator provides that the Administrator may be reimbursed for costs and expenses incurred by the Administrator for office space rental, office equipment and utilities allocable to us under the administration agreement, as well as any costs and expenses incurred by the Administrator or its affiliates relating to any non-investment advisory, administrative or operating services provided by the Administrator or its affiliates to us. We also bear all other costs and expenses of our operations and transactions (and the Company’s common stockholders indirectly bear all of the costs and expenses of the Company, SVCP, TCPC Funding and the SBIC), which may include those relating to:

•our organization;

•calculating our net asset value (including the cost and expenses of any independent valuation firms);

•interest payable on debt, if any, incurred to finance our investments;

•costs of future offerings of our common stock and other securities, if any;

•the base management fee and any incentive compensation;

•dividends and distributions on our preferred shares, if any, and common shares;

•administration fees payable under the administration agreement;

•fees payable to third parties relating to, or associated with, making investments;

•transfer agent and custodial fees;

•registration fees;

•listing fees;

•taxes;

•director fees and expenses;

•costs of preparing and filing reports or other documents with the SEC;

•costs of any reports, proxy statements or other notices to our stockholders, including printing costs;

•our fidelity bond;

•directors and officers/errors and omissions liability insurance, and any other insurance premiums;

•indemnification payments;

•direct costs and expenses of administration, including audit and legal costs; and

•all other expenses reasonably incurred by us and the Administrator in connection with administering our business, such as the allocable portion of overhead under the administration agreement, including rent and other allocable portions of the cost of certain of our officers and their respective staffs.

The investment management agreement provides that the base management fee be calculated at an annual rate of 1.5% of our total assets (excluding cash and cash equivalents) payable quarterly in arrears; provided, however, that, effective as of February 9, 2019, the base management fee is calculated at an annual rate of 1.0% of our total assets (excluding cash and cash equivalents) that exceed an amount equal to 200% of the net asset value of the Company. For purposes of calculating the base management fee, “total assets” is determined without deduction for any borrowings or other liabilities. The base management fee is calculated based on the value of our total assets and net asset value (excluding cash and cash equivalents) at the end of the most recently completed calendar quarter.

Additionally, the investment management agreement provides that the Advisor or its affiliates may be entitled to incentive compensation under certain circumstances. According to the terms of such agreement, no incentive compensation was incurred prior to January 1, 2013. Under the current investment management agreement, dated February 9, 2019, the incentive compensation equals the sum of (1) 20% of all ordinary income since January 1, 2013 through February 8, 2019 and 17.5% thereafter and (2) 20% of all net realized capital gains (net of any net unrealized capital depreciation) since January 1, 2013 through February 8, 2019 and 17.5% thereafter, less ordinary income incentive compensation and capital gains incentive compensation previously paid. However, incentive compensation will only be paid to the extent the cumulative total return of the Company after incentive compensation and including such payment would equal or exceed a 7% annual return on daily weighted-average contributed common equity. The determination of incentive compensation is subject to limitations under the 1940 Act and the Advisers Act.

Through December 31, 2017, the incentive compensation was an equity allocation to SVCP’s general partner under the LPA. Effective as of January 1, 2018, the LPA was amended to remove the incentive

compensation distribution provisions therein, and the incentive compensation became payable as a fee to the Advisor pursuant to the then-existing investment management agreements. The amendment had no impact on the amount of the incentive compensation paid or services received by the Company.

Critical accounting policies

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. Management considers the following critical accounting policies important to understanding the financial statements. In addition to the discussion below, our critical accounting policies are further described in the notes to our financial statements.

Valuation of portfolio investments

We value our portfolio investments at fair value based upon the principles and methods of valuation set forth in policies adopted by our board of directors. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Market participants are buyers and sellers in the principal (or most advantageous) market for the asset that (i) are independent of us, (ii) are knowledgeable, having a reasonable understanding about the asset based on all available information (including information that might be obtained through due diligence efforts that are usual and customary), (iii) are able to transact for the asset, and (iv) are willing to transact for the asset or liability (that is, they are motivated but not forced or otherwise compelled to do so).

Investments for which market quotations are readily available are valued at such market quotations unless the quotations are deemed not to represent fair value. We generally obtain market quotations from recognized exchanges, market quotation systems, independent pricing services or one or more broker-dealers or market makers. However, short term debt investments with original maturities of generally three months or less are valued at amortized cost, which approximates fair value. Debt and equity securities for which market quotations are not readily available, which is the case for many of our investments, or for which market quotations are deemed not to represent fair value, are valued at fair value using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors, who also approve in good faith the valuation of such securities as of the end of each quarter. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from the values that we may ultimately realize. In addition, changes in the market environment and other events may have differing impacts on the market quotations used to value some of our investments than on the fair values of our investments for which market quotations are not readily available. Market quotations may be deemed not to represent fair value in certain circumstances where we believe that facts and circumstances applicable to an issuer, a seller or purchaser, or the market for a particular security cause current market quotations to not reflect the fair value of the security. Examples of these events could include cases where a security trades infrequently causing a quoted purchase or sale price to become stale, where there is a “forced” sale by a distressed seller, where market quotations vary substantially among market makers, or where there is a wide bid-ask spread or significant increase in the bid-ask spread.

The valuation process approved by our board of directors with respect to investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value is as follows:

•The investment professionals of the Advisor provide recent portfolio company financial statements and other reporting materials to independent valuation firms approved by our board of directors.

•Such firms evaluate this information along with relevant observable market data to conduct independent appraisals each quarter, and their preliminary valuation conclusions are documented and discussed with senior management of the Advisor.

•The fair value of smaller investments comprising in the aggregate less than 5% of our total capitalization may be determined by the Advisor in good faith in accordance with our valuation policy without the employment of an independent valuation firm.

•The audit committee of the board of directors discusses the valuations, and the board of directors approves the fair value of the investments in our portfolio in good faith based on the input of the Advisor, the respective independent valuation firms (to the extent applicable) and the audit committee of the board of directors.

Those investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value are valued utilizing one or more methodologies, including the market approach, the income approach, or in the case of recent investments, the cost approach, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in determining the fair value of our investments include, as relevant and among other factors: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparables, our principal market (as the reporting entity) and enterprise values.

When valuing all of our investments, we strive to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances.

Our investments may be categorized based on the types of inputs used in their valuation. The level in the GAAP valuation hierarchy in which an investment falls is based on the lowest level input that is significant to the valuation of the investment in its entirety. Investments are classified by GAAP into the three broad levels as follows:

Level 1 — Investments valued using unadjusted quoted prices in active markets for identical assets.

Level 2 — Investments valued using other unadjusted observable market inputs, e.g. quoted prices in markets that are not active or quotes for comparable instruments.

Level 3 — Investments that are valued using quotes and other observable market data to the extent available, but which also take into consideration one or more unobservable inputs that are significant to the valuation taken as a whole.

As of December 31, 2020, 0.2% of our investments were categorized as Level 1, 4.1% were categorized as Level 2, 95.6% were Level 3 investments valued based on valuations by independent third-party sources, and 0.1% were Level 3 investments valued based on valuations by the Advisor.

As of December 31, 2019, none of our investments were categorized as Level 1, 8.3% were categorized as Level 2, 91.6% were Level 3 investments valued based on valuations by independent third-party sources, and 0.1% were Level 3 investments valued based on valuations by the Advisor.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the financial statements.

Revenue recognition

Interest and dividend income, including income paid in kind, is recorded on an accrual basis, when such amounts are considered collectible. Origination, structuring, closing, commitment and other upfront fees, including original issue discounts, earned with respect to capital commitments are generally amortized or accreted into interest income over the life of the respective debt investment, as are end-of-term or exit fees receivable upon repayment of a debt investment. Other fees, including certain amendment fees, prepayment fees and commitment fees on broken deals, are recognized as earned. Prepayment fees and similar income due upon the early repayment of a loan or debt security are recognized when earned and are included in interest income.

Certain of our debt investments are purchased at a discount to par as a result of the underlying credit risks and financial results of the issuer, as well as general market factors that influence the financial markets as a whole. Discounts on the acquisition of corporate bonds are generally amortized using the effective-interest or constant-yield method assuming there are no questions as to collectability. When principal payments on a loan are received in an amount in excess of the loan’s amortized cost, the excess principal payments are recorded as interest income.

Net realized gains or losses and net change in unrealized appreciation or depreciation

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Realized gains and losses are computed using the specific identification method. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Portfolio and investment activity

During the year ended December 31, 2020, we invested approximately $460.2 million, comprised of new investments in 18 new and 23 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $387.9 million, or 84.3% of total acquisitions, were in senior secured debt comprised of senior secured loans ($366.8 million, or 79.7% of total acquisitions), senior secured notes ($21.1 million, or 4.6% of total acquisitions) and $4.2 million (0.9% of total acquisitions) in unsecured notes. The remaining $68.1 million (14.8% of total acquisitions) was comprised of equity investments, including $54.4 million in equity interest in Edmentum, $7.2 million in equity interests in portfolios of debt and lease assets and $6.4 million in equity positions received in connection with debt investments. Additionally, we received approximately $480.7 million in proceeds from sales or repayments of investments during the year ended December 31, 2020.

During the year ended December 31, 2019, we invested approximately $700.0 million, comprised of new investments in 25 new and 20 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, 94.0% were in senior secured debt comprised of senior secured loans ($643.0 million, or 91.9% of total acquisitions) and senior secured notes ($15.0 million, or 2.1% of total acquisitions). The remaining $42.0 million (6.0% of total acquisitions) was comprised primarily of $5.0 million (0.7% of total acquisitions) in unsecured notes and $37.0 million (5.3% of total acquisitions) in equity investments comprised primarily of $31.6 million in equity interests in portfolios of debt and lease assets and $5.4 million in

equity positions received in connection with debt investments. Additionally, we received approximately $596.4 million in proceeds from sales or repayments of investments during the year ended December 31, 2019.

At December 31, 2019, our investment portfolio of 1,649.5 million (at fair value) consisted of 105 portfolio companies and was invested 93.1% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 86.6% in senior secured loans, 5.2% in senior secured notes, 1.3% in junior notes and 6.9% in equity investments. Our average portfolio company investment at fair value was approximately $15.7 million. Our largest portfolio company investment by value was approximately 4.4% of our portfolio and our five largest portfolio company investments by value comprised approximately 17.2% of our portfolio at December 31, 2019.

During 2019, we transitioned our industry classification system for financial reporting purposes to more closely align with the system generally used by the Advisor for portfolio management purposes. As part of this transition, we are generally classifying the industries of our portfolio companies based on the primary end market served rather than the product or service directed to those end markets.

The industry composition of our portfolio at fair value at December 31, 2020 was as follows:


Industry	Percent of Total Investments
Internet Software and Services	12.8	%
Diversified Financial Services	11.6	%
Software	7.3	%
Textiles, Apparel and Luxury Goods	6.1	%
Diversified Consumer Services	5.5	%
Media	4.7	%
Automobiles	4.5	%
Professional Services	4.5	%
IT Services	3.1	%
Personal Products	2.9	%
Insurance	2.9	%
Airlines	2.6	%
Diversified Telecommunication Services	2.3	%
Consumer Finance	2.3	%
Capital Markets	2.3	%
Health Care Technology	2.1	%
Hotels, Restaurants and Leisure	2.0	%
Building Products	1.9	%
Internet and Catalog Retail	1.8	%
Commercial Services and Supplies	1.7	%
Thrifts and Mortgage Finance	1.7	%
Specialty Retail	1.7	%
Tobacco Related	1.7	%
Aerospace and Defense	1.6	%
Energy Equipment and Services	1.6	%
Healthcare Providers and Services	1.5	%
Electrical Equipment	1.5	%
Road and Rail	1.0	%
Other	2.8	%
Total	100.0	%

The weighted average effective yield of our debt portfolio was 9.6% at December 31, 2020 and 10.3% at December 31, 2019. The weighted average effective yield of our total portfolio was 9.2% at December 31, 2020 and 9.7% at December 31, 2019. At December 31, 2020, 95.4% of debt investments in our portfolio bore interest based on floating rates, such as LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 4.6% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 79.7% at December 31, 2020. Debt investments in three portfolio companies were on non-accrual status as of December 31, 2020, representing 0.5% of the portfolio at fair value and 1.2% at cost. At December 31, 2019, 92.1% of debt investments in our portfolio bore interest based on floating rates, such as LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 7.9% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 63.5% at December 31, 2019.

Results of operations

Investment income

Investment income totaled $172.1 million, $195.2 million and $190.5 million, respectively, for the years ended December 31, 2020, 2019 and 2018, of which $161.7 million, $191.6 million and $189.1 million were attributable to interest and fees on our debt investments, $2.5 million, $2.4 million and $0.8 million to dividend income, $0.1 million, $0.3 million and $0.3 million to lease income and $7.9 million, $0.9 million and $0.3 million to other income, respectively. Included in interest and fees on our debt investments were $8.4 million, $11.9 million and $9.8 million of non-recurring income related to prepayments for the years ended December 31, 2020, 2019 and 2018, respectively. Included in other income were $4.5 million, $0.0 million and $0.0 million in amendment fees during the years ended December 31, 2020, 2019 and 2018, respectively. The decrease in investment income in the year ended December 31, 2020 compared to the year ended December 31, 2019 primarily reflects a decrease in interest income due to the decline in LIBOR rates and the lower prepayment income partially offset by the higher other income received during the year ended December 31, 2020. The increase in investment income in the year ended December 31, 2019 compared to the year ended December 31, 2018 reflects an increase in interest income due to the larger portfolio size in addition to the increase in dividend, prepayment and other income during the year ended December 31, 2019 compared to the year ended December 31, 2018.

Expenses

Total operating expenses for the years ended December 31, 2020, 2019 and 2018 were $88.9 million, $100.3 million and $97.0 million, respectively, comprised of $41.2 million, $46.4 million and $40.5 million in interest expense and related fees, $23.8 million, $24.9 million and $24.2 million in base management and advisory fees, $15.3 million, $20.3 million and $23.3 million in incentive fee expense, $2.2 million, $2.3 million and $2.4 million in administrative expenses, $1.8 million, $1.8 million and $2.3 million in legal and professional fees, and $4.5 million, $4.6 million and $4.3 million in other expenses, respectively. The decrease in expenses in the year ended December 31, 2020 compared to the year ended December 31, 2019 primarily reflects the deferral of incentive fees related to the first quarter of 2020 and the lower interest expense due to lower LIBOR rates during the year ended December 31, 2020. The increase in expenses in the year ended December 31, 2019 compared to the year ended December 31, 2018 primarily reflects the higher interest expense and other costs related to the increase in outstanding debt, partially offset by the lower incentive fees due to reduction in the incentive fee rate from 20.0% to 17.5% on February 9, 2019.

Net investment income

Net investment income was $83.2 million, $94.9 million and $93.4 million, respectively, for the years ended December 31, 2020, 2019 and 2018. The decrease in net investment income in the year ended December 31, 2020 compared to the year ended December 31, 2019 primarily reflects the decrease in total investment income, partially offset by the decrease in expenses in the year ended December 31, 2020. The increase in net investment income in the year ended December 31, 2019 compared to the year ended December 31, 2018 primarily reflects the increase in total investment income, partially offset by the increase in expenses in the year ended December 31, 2019.

Net realized and unrealized gain or loss

Net realized loss for the years ended December 31, 2020, 2019 and 2018 was $5.5 million, $76.6 million and $28.8 million, respectively. Net realized loss for the year ended December 31, 2020 was comprised primarily of a $15.6 million loss from the restructuring of AGY and a $2.4 million loss on the disposition of our investment in V Telecom, partially offset by the $9.3 million gain from the disposition of a portion of our investment in Edmentum and a $4.9 million gain on the disposition of our investment in STG-Fairway (First Advantage), exclusive of prepayment income earned. Our loans to AGY generated significant interest income prior to the restructuring. Net realized loss for the year ended December 31, 2019 was comprised primarily of $56.6 million on the restructuring of

our investment in Fidelis and $20.5 million on the disposition of our investment in Green Biologics. Both Fidelis and Green Biologics had generated significant income prior to their dispositions. Net realized losses during the year ended December 31, 2018 were comprised primarily of a $25.8 million loss realization on the disposition of our loan to RM OpCo, LLC ("Real Mex") and a $4.1 million loss realization on the disposition of our loan to Globecomm Systems, Inc. ("Globecomm"). Our loan to Real Mex was part of our legacy pre-IPO strategy. Both Globecomm and Real Mex had generated significant income prior to their dispositions.

For the years ended December 31, 2020, 2019 and 2018, the change in net unrealized appreciation/depreciation was $(3.9) million, $12.3 million and $(19.1) million, respectively. The change in net unrealized appreciation/depreciation for the year ended December 31, 2020 was primarily driven by net spread widening and volatility across our portfolio related to the market impact of COVID-19 including a $9.2 million unrealized loss on Fishbowl, a $6.7 million unrealized loss on our investment in Credit Suisse notes and a $5.5 million loss on GlassPoint Solar, partially offset by a gain of $8.9 million on our investment in Amteck, $8.7 million on our investment in Aventiv, $5.9 million on our investment in Domo and a gain of $5.0 million on our investment in One Sky. The change in net unrealized appreciation/depreciation for the year ended December 31, 2019 was comprised primarily of a gain of $13.4 million on our investment in Edmentum, a gain of $6.3 million on our investment in 36th Street, and reversals of previously recognized unrealized losses of $14.9 million from Green Biologics and $3.5 million from Fidelis, partially offset by markdowns of $12.5 million on our investment in Securus and $7.7 million on our investment in AGY. The change in net unrealized appreciation/depreciation for the year ended December 31, 2018 was comprised primarily of markdowns of $10.0 million, $9.4 million and $8.5 million on our investments in AGY, Kawa Solar and Green Biologics, respectively, as well as mark downs across the portfolio as a result of wider spreads, partially offset by the reversal of previously unrealized losses of $15.3 million from the disposition of our loan to Real Mex.

Incentive compensation

Incentive fees for the years ended December 31, 2020, 2019 and 2018 were $15.3 million, $20.3 million and $23.3 million, respectively, and were payable due to our performance exceeding the cumulative total return threshold. Because our incentive compensation is computed on a cumulative basis, the incentive compensation for any period may include amounts not earned in prior periods (due to our cumulative total return falling below the total return hurdle in such period), but subsequently earned when our cumulative total return again exceeds the total return hurdle (such amount, a “Catchup Amount”). Due to portfolio volatility related to the market impact of COVID-19, $3.9 million of incentive fees related to net investment income for the first quarter of 2020 were deferred (the “First Quarter Catchup Amount”) and subsequently earned when our performance again exceeded the cumulative total return hurdle during the second quarter of 2020. However, rather than receiving all incentive compensation earned as of June 30, 2020, the Advisor voluntarily deferred 5/6 of the First Quarter Catchup Amount to subsequent quarters such that 1/6 of the First Quarter Catchup Amount will be paid in each subsequent quarter to the extent that the Company’s cumulative performance exceeds the cumulative total return hurdle in such quarter. Accordingly, the year ended December 31, 2020 include $1.9 million (3/6) of the First Quarter Catchup Amount.

Income tax expense, including excise tax

The Company has elected to be treated as a RIC under Subchapter M of the Internal Revenue Code (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 stockholders 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 stockholders which will generally relieve the Company from U.S. federal income taxes.

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 in the years ended December 31, 2020 and 2019. For the prior year ended December 31, 2018, excise tax expense of $0.1 million was recorded, based on the amount of tax-basis ordinary income carried forward at the prior year-end.

Net increase in net assets resulting from operations

The net increase in net assets applicable to common shareholders resulting from operations was $71.4 million, $30.6 million and $45.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The higher net increase in net assets resulting from operations during the year ended December 31, 2020 was primarily due to the lower net realized and unrealized losses, partially offset by the lower net investment income during the year ended December 31, 2020 and a $2.4 million loss on the extinguishment of Funding Facility I compared to the year ended December 31, 2019. The lower net increase in net assets resulting from operations during the year ended December 31, 2019 was primarily due to the higher net realized and unrealized loss during the year ended December 31, 2019 compared to the year ended December 31, 2018, partially offset by the increase in net investment income.

Liquidity and capital resources

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.

The following table summarizes the total shares issued and proceeds received in connection with the Company’s dividend reinvestment plan for the years ended December 31, 2020 and 2019:


	2020		2019
Shares Issued	838		819
Average Price Per Share	$	7.46	$	13.98
Proceeds	$	6,253	$	11,453

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 Securities Exchange Act of 1934. 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 February 24, 2021, to be in effect through the earlier of two trading days after our first quarter 2021 earnings release, 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. The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the years ended December 31, 2020 and 2019:


	2020		2019
Shares Repurchased	1,000,000		9,000
Price Per Share *	$	6.10	$	13.96
Total Cost	$	6,100,190	$	125,679

______________

* Weighted-average price per share

Total leverage outstanding and available under the combined Leverage Program at December 31, 2020 were as follows:


	Maturity	Rate		Carrying Value*		Available		Total Capacity
Operating Facility	2024	L+2.00%	†	$	120,454,270	$	179,545,730	$	300,000,000	‡
Funding Facility II	2025	L+2.00%	§	36,000,000		164,000,000		200,000,000		**
SBA Debentures	2024−2029	2.63%	††	138,000,000		12,000,000		150,000,000
2022 Convertible Notes ($140 million par)	2022	4.625%		139,219,797		—		139,219,797
2022 Notes ($175 million par)	2022	4.125%		174,778,395		—		174,778,395
2024 Notes ($250 million par)	2024	3.900%		247,871,909		—		247,871,909
Total leverage				856,324,371		$	355,545,730	$	1,211,870,101
Unamortized issuance costs				(6,308,172)
Debt, net of unamortized issuance costs				$	850,016,199

______________

* Except for the convertible notes, the 2022 Notes and the 2024 Notes, all carrying values are the same as the principal amounts outstanding.

† As of December 31, 2020, $9.0 million of the outstanding amount bore interest at a rate of EURIBOR + 2.00%.

‡ Facility has a $100 million accordion which allows for expansion of the facility to up to $400.0 million subject to consent from the lender and other customary conditions.

§ Subject to certain funding requirements

** Facility has a $50 million accordion which allows for expansion of the facility to up to $250.0 million subject to consent from the lender and other customary conditions.

†† Weighted-average interest rate, excluding fees of 0.35% or 0.36%

Under Section 61(a) of the 1940 Act, prior to March 23, 2018, a BDC was generally not permitted to issue senior securities unless after giving effect thereto the BDC met a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which includes all borrowings of the BDC, of at least 200%. On March 23, 2018, the Small Business Credit Availability Act (“SBCAA”) was signed into law, which among other things, amended Section 61(a) of the 1940 Act to add a new Section 61(a)(2) that reduces the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements and obtains certain approvals. The reduced asset coverage requirement would permit a BDC to have a ratio of total consolidated assets to outstanding indebtedness of 2:1 as compared to a maximum of 1:1 under the 200% asset coverage requirement.

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 stockholder 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 stockholders 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 December 31, 2020, the Company’s asset coverage ratio was 206%.

On July 13, 2015, we obtained exemptive relief from the SEC to permit us to exclude debt outstanding under the SBA Debentures from our asset coverage test under the 1940 Act. The exemptive relief provides us with increased flexibility under the 150% asset coverage test by permitting the SBIC to borrow up to $150.0 million more than it would otherwise be able to absent the receipt of this exemptive relief.

Net cash provided by operating activities during the year ended December 31, 2020 was $122.3 million, consisting primarily of net investment income (net of non-cash income and expenses) of approximately $90.4 million, and the settlement of disposition of investments (net of acquisitions) of $31.9 million.

Net cash used in financing activities was $147.2 million during the year ended December 31, 2020, consisting primarily of $110.0 million net repayments of credit facility draws, $76.6 million in dividends paid to common shareholders, $6.1 million in repurchases of common shares and $4.1 million in payments of debt issuance costs, partially offset by $49.6 million in net proceeds from the issuance of unsecured debt.

At December 31, 2020, we had $20.0 million in cash and cash equivalents.

The Operating Facility and Funding Facility II are secured by substantially all of the assets in our portfolio, including cash and cash equivalents, and are subject to compliance with customary affirmative and negative covenants, including the maintenance of a minimum shareholders’ equity, the maintenance of a ratio of not less than 150% of total assets (less total liabilities other than indebtedness) to total indebtedness, and restrictions on certain payments and issuance of debt. Unfavorable economic conditions may result in a decrease in the value of our investments, which would affect both the asset coverage ratios and the value of the collateral securing the Operating Facility and Funding Facility II, and may therefore impact our ability to borrow under the Operating Facility and Funding Facility II. In addition to regulatory restrictions that restrict our ability to raise capital, the Leverage Program contains various covenants which, if not complied with, could accelerate repayment of debt, thereby materially and adversely affecting our liquidity, financial condition and results of operations. At December 31, 2020, we were in compliance with all financial and operational covenants required by the Leverage Program.

Unfavorable economic conditions, such as those caused by COVID-19, while potentially creating attractive opportunities for us, may decrease liquidity and raise the cost of capital generally, which could limit our ability to renew, extend or replace the Leverage Program on terms as favorable as are currently included therein. If we are unable to renew, extend or replace the Leverage Program upon the various dates of maturity, we expect to have sufficient funds to repay the outstanding balances in full from our net investment income and sales of, and repayments of principal from, our portfolio company investments, as well as from anticipated debt and equity capital raises, among other sources. Unfavorable economic conditions may limit our ability to raise capital or the ability of the companies in which we invest to repay our loans or engage in a liquidity event, such as a sale, recapitalization or initial public offering. The 2022 Convertible Notes, the 2022 Notes, the Operating Facility, Funding Facility II and the 2024 Notes, mature in March 2022, August 2022, May 2024, August 2025 and August 2024, respectively. Any inability to renew, extend or replace the Leverage Program could adversely impact our liquidity and ability to find new investments or maintain distributions to our stockholders.

Challenges in the market are intensified for us by certain regulatory limitations under the Code and the 1940 Act. To maintain our qualification as a RIC, we must satisfy, among other requirements, an annual distribution requirement to pay out at least 90% of our ordinary income and short-term capital gains to our stockholders. Because we are required to distribute our income in this manner, and because the illiquidity of many of our investments may make it difficult for us to finance new investments through the sale of current investments, our ability to make new investments is highly dependent upon external financing. While we anticipate being able to continue to satisfy all covenants and repay the outstanding balances under the Leverage Program when due, there can be no assurance that we will be able to do so, which could lead to an event of default.

Contractual obligations

In addition to obligations under our Leverage Program, we have entered into several contracts under which we have future commitments. Pursuant to an investment management agreement, the Advisor manages our day-to-day operations and provides investment advisory services to us. Payments under the investment management agreement are equal to a percentage of the value of our total assets (excluding cash and cash equivalents) and an incentive compensation, plus reimbursement of certain expenses incurred by the Advisor. Under our administration agreement, the Administrator provides us with administrative services, facilities and personnel. Payments under the administration agreement are equal to an allocable portion of overhead and other expenses incurred by the

Administrator in performing its obligations to us, and may include rent and our allocable portion of the cost of certain of our officers and their respective staffs. We are responsible for reimbursing the Advisor for due diligence and negotiation expenses, fees and expenses of custodians, administrators, transfer and distribution agents, counsel and directors, insurance, filings and registrations, proxy expenses, expenses of communications to investors, compliance expenses, interest, taxes, portfolio transaction expenses, costs of responding to regulatory inquiries and reporting to regulatory authorities, costs and expenses of preparing and maintaining our books and records, indemnification, litigation and other extraordinary expenses and such other expenses as are approved by the directors as being reasonably related to our organization, offering, capitalization, operation or administration and any portfolio investments, as applicable. The Advisor is not responsible for any of the foregoing expenses and such services are not investment advisory services under the 1940 Act. Either party may terminate each of the investment management agreement and administration agreement without penalty upon not less than 60 days’ written notice to the other.

Distributions

Our quarterly dividends and distributions to common stockholders are recorded on the ex-dividend date. Distributions are declared considering our estimate of annual taxable income available for distribution to stockholders and the amount of taxable income carried over from the prior year for distribution in the current year. We do not have a policy to pay distributions at a specific level and expect to continue to distribute substantially all of our taxable income. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

The following tables summarize dividends declared for the years ended December 31, 2020 and 2019:

Date Declared

Record Date

Payment Date

Type

Amount
Per Share

Total Amount

February 26, 2020

March 17, 2020

March 31, 2020

Regular

0.36

21,155,913

May 11, 2020

June 16, 2020

June 30, 2020

Regular

0.36

20,796,088

August 6, 2020

September 16, 2020

September 30, 2020

Regular

0.30

17,330,179

November 2, 2020

December 17, 2020

December 31, 2020

Regular

0.30

17,330,179

1.32

76,612,359

Date Declared

Record Date

Payment Date

Type

Amount Per Share

Total Amount

February 28, 2019

March 15, 2019

March 29, 2019

Regular

0.36

21,155,619

May 8, 2019

June 14, 2019

June 28, 2019

Regular

0.36

21,155,688

August 8, 2019

September 16, 2019

September 30, 2019

Regular

0.36

21,155,760

November 6, 2019

December 17, 2019

December 31, 2019

Regular

0.36

21,155,837

1.44

84,622,904

The following table summarizes the total shares issued in connection with our dividend reinvestment plan for the years ended December 31, 2020 and 2019:


	2020		2019
Shares Issued	838		819
Average Price Per Share	$	7.46	$	13.98
Proceeds	$	6,253	$	11,453

•98% of our ordinary income (not taking into account any capital gains or losses) for the calendar year;

•98.2% of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for the one-year period generally ending on October 31 of the calendar year; and

•certain undistributed amounts from previous years on which we paid no U.S. federal income tax.

We may, at our discretion, carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If we choose to do so, all other things being equal, this would increase expenses and reduce the amounts available to be distributed to our stockholders. We will accrue excise tax on estimated taxable income as required. In addition, although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment.

Prior to its discontinuance effective July 7, 2020, we had offered an “opt in” dividend reinvestment plan to our common stockholders, pursuant to which the dividends payable to those shareholders who so elected would be reinvested in shares of common stock.

In order to satisfy the annual distribution requirement applicable to RICs, we have the ability to declare a large portion of a dividend in shares of our common stock instead of in cash. As long as a portion of such dividend is paid in cash and certain requirements are met, the entire distribution would be treated as a dividend for U.S. federal income tax purposes.

Related Parties

We have entered into a number of business relationships with affiliated or related parties, including the following:

•Each of the Company, TCPC Funding, and the SBIC has entered into an investment management agreement with the Advisor.

•The Administrator provides us with administrative services necessary to conduct our day-to-day operations. For providing these services, facilities and personnel, the Administrator may be reimbursed by us for expenses incurred by the Administrator in performing its obligations under the administration agreement, including our allocable portion of the cost of certain of our officers and the Administrator’s administrative staff and providing, at our request and on our behalf, significant managerial assistance to our portfolio companies to which we are required to provide such assistance. The Administrator is an affiliate of the Advisor and certain other series and classes of SVOF/MM, LLC serve as the general partner or managing member of certain other funds managed by the Advisor.

•We have entered into a royalty-free license agreement with BlackRock and the Advisor, pursuant to which each of BlackRock and the Advisor has agreed to grant us a non-exclusive, royalty-free license to use the name "BlackRock" and "TCP."

The Advisor and its affiliates, employees and associates currently do and in the future may manage other funds and accounts. The Advisor and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds or accounts. Accordingly, conflicts may arise regarding the allocation of investments or opportunities among us and those accounts. In general, the Advisor will allocate investment opportunities pro rata among us and the other funds and accounts (assuming the investment satisfies the objectives of each) based on the amount of committed capital each then has available. The allocation of certain investment opportunities in private placements is subject to independent director approval pursuant to the terms of the co-investment exemptive order applicable to us. In certain cases, investment opportunities may be made other than on a pro rata basis. For example, we may desire to retain an asset at the same time that one or more other funds or accounts desire to sell it or we may not have additional capital to invest at a time the other funds or accounts do. If the Advisor is unable to manage our investments effectively, we may be unable to achieve our investment objective. In addition, the Advisor may face conflicts in allocating investment opportunities between us and certain other entities that could impact our investment returns. While our ability to enter into transactions with our affiliates is restricted under the 1940 Act, we have received an exemptive order from the SEC permitting certain affiliated investments subject to certain conditions. As a result, we may face conflict of interests and investments made pursuant to the exemptive order conditions which could in certain circumstances affect adversely the price paid or received by us or the availability or size of the position purchased or sold by us.

Recent Developments

From January 1, 2021 through February 24, 2021, the Company has invested approximately $107.3 million primarily in five senior secured loans with a combined effective yield of approximately 10.2%.

On February 9, 2021, the Company issued $175.0 million in aggregate principal amount of 2.850% senior unsecured notes due 2026 (the “2026 Notes”). The 2026 Notes bear interest at a rate of 2.850% per year, payable semiannually, and will mature on February 9, 2026.

On February 24, 2021, the Company’s board of directors re-approved the Company Repurchase Plan, to be in effect through the earlier of two trading days after the Company’s first quarter 2021 earnings release or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.

On February 25, 2021, the Company’s board of directors declared a first quarter dividend of $0.30 per share payable on March 31, 2021 to stockholders of record as of the close of business on March 17, 2021.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. At December 31, 2020, 95.4% of debt investments in our portfolio bore interest based on floating rates, such as LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate. The interest rates on such investments generally reset by reference to the current market index after one to six months. At December 31, 2020, the percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 79.7%. Floating rate investments subject to a floor generally reset by reference to the current market index after one to six months only if the index exceeds the floor.

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. We assess our portfolio companies periodically to determine whether such companies will be able to continue making interest payments in the event that interest rates increase. There can be no assurances that the portfolio companies will be able to meet their contractual obligations at any or all levels of increases in interest rates.

Based on our December 31, 2020 balance sheet, the following table shows the annual impact on net investment income (excluding the related incentive compensation impact) of base rate changes in interest rates (considering interest rate floors for variable rate instruments and the fact that our assets and liabilities may not have the same base rate period as assumed in this table) assuming no changes in our investment and borrowing structure:


Basis Point Change	Interest income		Interest Expense		Net Investment Income
Up 300 basis points	$	31,359,869	$	(4,693,628)	$	26,666,241
Up 200 basis points	16,823,290		(3,129,085)		13,694,205
Up 100 basis points	4,414,286		(1,564,543)		2,849,743
Down 100 basis points	(438,606)		365,540		(73,066)
Down 200 basis points	(438,606)		365,540		(73,066)
Down 300 basis points	(438,606)		365,540		(73,066)

Item 8. Financial Statements and Supplementary Data

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


			Page
Reports of Independent Registered Public Accounting Firm			93
Consolidated Statements of Assets and Liabilities as of December 31 , 2020 and December 31, 2019			96
Consolidated Schedule of Investments as of December 31 , 2020 and December 31, 2019			97
Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018			115
Consolidated Statements of Changes in Net Assets for the years ended December 31 , 2020 , 2019 and 2018			116
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018			117
Notes to Consolidated Financial Statements			118
Consolidated Schedule of Changes in Investments in Affiliates as of December 31 , 2020 and 2019			145
Consolidated Schedule of Restricted Securities of Unaffiliated Issuers as of December 31, 2020 and 2019			149

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of BlackRock TCP Capital Corp.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of assets and liabilities of BlackRock TCP Capital Corp. and subsidiaries (the "Company"), including the consolidated schedules of investments, as of December 31, 2020 and 2019, the related consolidated statements of operations, changes in net assets, and cash flows, for each of the three years in the period then ended, consolidated financial highlights (in Note 10) for each of the five years in the period then ended, and the related consolidated notes and consolidating schedules and statements listed in Index at Item 15(a) (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations, changes in net assets, and cash flows for each of the three years in the period then ended, and financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 25, 2021, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2020 and 2019, by correspondence with the custodian, loan agents, and borrowers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to an account or disclosure that is material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Investment Valuation — Level 3 Investments — Refer to Note 2 to the financial statements

Critical Audit Matter Description

The Company held investments classified as Level 3 investments under accounting principles generally accepted in the United States of America. These investments included bank debt, other corporate debt, and equity, which are valued based on quotations or other affirmative pricing from independent third-party sources, or priced directly by Tennenbaum Capital Partners, LLC (the “Advisor”), each of which was determined using quotes and other observable market data to the extent such data are available, but which also required the use of one or more unobservable inputs significant to the valuation taken as a whole. Fair valuations of investments in each asset class are determined using one or more methodologies including market quotations, the market approach, income approach, or, in the case of recent investments, the cost approach, as appropriate. The fair value of the Company’s Level 3 investments was $1,559,145,483 as of December 31, 2020.

We identified the valuation of Level 3 investments as a critical audit matter because of the judgments necessary for

management to select valuation methodologies and to select significant unobservable inputs to estimate the fair value. This required a high degree of audit judgement and increased effort, including the need to involve our fair value specialists who possess significant quantitative and modeling expertise, to audit and evaluate the appropriateness of these models and unobservable inputs.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the valuation methodologies and unobservable inputs used by management to estimate the fair value of Level 3 investments included the following, among others:

•We tested the effectiveness of controls over management’s valuation of Level 3 investments, including those related to selection of valuation methodologies and significant unobservable inputs.

•We evaluated the appropriateness of the selected valuation methodologies used for Level 3 investments and tested the related significant unobservable inputs by comparing these inputs to external sources. We evaluated the reasonableness of any significant changes in valuation methodologies or significant unobservable inputs for those investments from the prior year-end, including the considerations of the impact of COVID-19. For selected investments, we used the assistance of our fair value specialists.

•For selected investments, with the assistance of our fair value specialists, we developed an independent estimate of the fair value and compared our estimate to management’s estimate.

•We evaluated management’s ability to reasonably estimate fair value by comparing management’s historical estimates to subsequent transactions, taking into account changes in market- or investment- specific conditions, where applicable.

/s/ DELOITTE & TOUCHE LLP

Los Angeles, California

February 25, 2021

We have served as the Company’s auditor since 2015.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of BlackRock TCP Capital Corp.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of BlackRock TCP Capital Corp. and subsidiaries (the “Company”) as of December 31, 2020, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2020, of the Company and our report dated February 25, 2021, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ DELOITTE & TOUCHE LLP

Los Angeles, California

February 25, 2021

BlackRock TCP Capital Corp.

Consolidated Statements of Assets and Liabilities


	December 31, 2020		December 31, 2019

Assets
Investments, at fair value:
Companies less than 5% owned (cost of $1,473,322,720 and $1,483,508,500, respectively)	$	1,461,610,769	$	1,474,318,011
Companies 5% to 25% owned (cost of $63,114,875 and $70,112,667, respectively)	68,927,182		75,880,291
Companies more than 25% owned (cost of $136,332,302 and $135,655,840, respectively)	99,026,531		99,308,593
Total investments (cost of $1,672,769,897 and $1,689,277,007, respectively)	1,629,564,482		1,649,506,895

Cash and cash equivalents	20,006,580		44,848,539
Accrued interest income:
Companies less than 5% owned	15,557,669		16,937,339
Companies 5% to 25% owned	368		665,165
Companies more than 25% owned	13,611		305,721
Deferred debt issuance costs	4,984,388		5,476,382
Receivable for investments sold	278,737		1,316,667
Prepaid expenses and other assets	1,581,320		3,012,488
Total assets	1,671,987,155		1,722,069,196

Liabilities
Debt, net of unamortized issuance costs of $6,308,172 and $7,711,684, respectively	850,016,199		907,802,387
Payable for investments purchased	33,275,348		13,057,446
Interest payable	9,886,085		10,837,121
Management and advisory fees payable	5,753,347		5,429,075
Incentive compensation payable	5,020,794		4,753,671
Reimbursements due to the Advisor	1,344,756		1,591,651
Accrued expenses and other liabilities	1,704,048		2,279,459
Total liabilities	907,000,577		945,750,810

Commitments and contingencies (Note 5)

Net assets	$	764,986,578	$	776,318,386

Composition of net assets applicable to common shareholders
Common stock, $0.001 par value; 200,000,000 shares authorized, 57,767,264 and 58,766,426 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively	$	57,767	$	58,766
Paid-in capital in excess of par	979,973,202		997,379,362
Distributable earnings (loss)	(215,044,391)		(221,119,742)
Net assets	$	764,986,578	$	776,318,386

Net assets per share	$	13.24	$	13.21

See accompanying notes to the consolidated financial statements.

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments

December 31, 2020


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (A)
Aerospace and Defense
Unanet, Inc.	First Lien Delayed Draw Term Loan	LIBOR(M)	—		6.25	%	6.44	%	5/31/2024	$	5,127,551	$	5,072,277	$	5,005,102	0.30	%	N
Unanet, Inc.	First Lien Term Loan	LIBOR(M)	—		6.25	%	6.44	%	5/31/2024	$	19,897,959	19,747,253		19,579,592		1.19	%	N
Unanet, Inc.	Sr Secured Revolver	LIBOR(M)	—		6.25	%	6.44	%	5/31/2024	$	2,448,980	2,431,281		2,409,796		0.15	%	N
												27,250,811		26,994,490		1.64	%
Airlines
Mesa Airlines, Inc.	Aircraft Acquisition Incremental Loan	LIBOR(M)	2.00	%	5.00	%	7.00	%	9/27/2023	$	1,947,089	1,929,445		1,888,676		0.11	%	N
Mesa Airlines, Inc.	Aircraft Acquisition Loan	LIBOR(M)	2.00	%	5.00	%	7.00	%	6/5/2023	$	15,488,204	15,358,100		15,116,487		0.92	%	N
One Sky Flight, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	7.50	%	8.50	%	12/27/2024	$	19,000,000	18,679,830		19,190,000		1.16	%	N
												35,967,375		36,195,163		2.19	%
Automobiles
AutoAlert, LLC	First Lien Incremental Term Loan	LIBOR(Q)	0.25	%	10.75	%	11.00	%	1/1/2022	$	41,207,522	41,207,522		38,776,278		2.35	%	N
AutoAlert, LLC	First Lien Term Loan	LIBOR(Q)	0.25	%	10.75	%	11.00	%	1/1/2022	$	16,307,846	16,307,846		15,345,683		0.93	%	N
DealerFX, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	6.25% Cash + 2.00% PIK		9.25	%	2/1/2023	$	16,520,125	16,365,326		16,404,484		0.99	%	N
												73,880,694		70,526,445		4.27	%
Building Products
Dodge Data & Analytics, LLC	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	7.00	%	8.00	%	3/31/2021	$	819,552	819,552		819,552		0.05	%	N
Dodge Data & Analytics, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	7.00	%	8.00	%	3/31/2021	$	33,152,046	33,152,046		33,152,046		2.01	%	N
												33,971,598		33,971,598		2.06	%
Capital Markets
HighTower Holding, LLC	Second Lien Term Loan	LIBOR(Q)	1.00	%	8.75	%	9.75	%	1/31/2026	$	15,080,645	14,774,280		15,080,645		0.91	%	N
HighTower Holding, LLC	Second Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	8.75	%	9.75	%	1/31/2026	$	6,169,355	6,073,309		6,169,355		0.37	%	N
HighTower Holdings	Second Lien Term Loan	LIBOR(Q)	1.00	%	8.75	%	9.75	%	1/31/2026	$	6,249,999	6,128,534		6,249,999		0.38	%	N
Pico Quantitative Trading, LLC	First Lien Term Loan (1.0% Exit Fee)	LIBOR(Q)	1.50	%	7.25	%	8.75	%	2/7/2025	$	21,791,007	20,969,685		21,594,888		1.31	%	L/N
												47,945,808		49,094,887		2.97	%
Commercial Services and Supplies
Kellermeyer Bergensons Services, LLC	First Lien Delayed Draw Term Loan A	LIBOR(Q)	1.00	%	6.50	%	7.50	%	11/7/2026	$	1,423,529	1,411,012		1,437,765		0.09	%	N
Kellermeyer Bergensons Services, LLC	First Lien Delayed Draw Term Loan B	LIBOR(Q)	1.00	%	6.50	%	7.50	%	11/7/2026	$	371,111	354,609		390,705		0.02	%	N
Kellermeyer Bergensons Services, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	6.50	%	7.50	%	11/7/2026	$	6,470,588	6,419,832		6,535,294		0.40	%	N
Team Software, Inc.	First Lien Incremental Term Loan	LIBOR(Q)	—		5.50	%	5.81	%	9/17/2023	$	7,220,080	7,142,178		7,183,980		0.44	%	N
Team Software, Inc.	First Lien Revolver	LIBOR(Q)	—		5.50	%	5.81	%	9/17/2023	$	1,053,363	1,024,123		1,035,807		0.06	%	N
Team Software, Inc.	First Lien Term Loan	LIBOR(Q)	—		5.50	%	5.81	%	9/17/2023	$	13,167,038	13,050,648		13,101,203		0.79	%	N
												29,402,402		29,684,754		1.80	%
Communications Equipment
Avanti Communications Jersey Limited (United Kingdom)	1.25 Lien Term Loan	Fixed	—		12.5% PIK		12.50	%	5/24/2021	$	232,780	232,780		232,780		0.01	%	H/N
Avanti Communications Jersey Limited (United Kingdom)	1.5 Lien Delayed Draw Term Loan	Fixed	—		12.5% PIK		12.50	%	5/24/2021	$	1,373,054	1,373,054		1,373,054		0.08	%	H/N
Avanti Communications Jersey Limited (United Kingdom)	1.5 Lien Term Loan	Fixed	—		12.5% PIK		12.50	%	5/24/2021	$	319,776	294,921		319,776		0.02	%	H/N
Avanti Communications Group, PLC (United Kingdom)	Sr New Money Initial Note	Fixed	—		9% PIK		—		10/1/2022	$	1,592,934	1,591,586		637,174		0.04	%	C/E/G/H/N
Avanti Communications Group, PLC (United Kingdom)	Sr Second-Priority PIK Toggle Note	Fixed	—		9% PIK		—		10/1/2022	$	4,064,721	4,064,219		1,625,888		0.10	%	C/E/G/H/N
												7,556,560		4,188,672		0.25	%

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Construction and Engineering
Hylan Datacom & Electrical, LLC	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	5.50% Cash + 4.50% PIK		11.00	%	7/25/2021	$	2,658,374	$	2,645,763	$	2,261,479	0.14	%	N
Hylan Datacom & Electrical, LLC	First Lien Term Loan (3.15% Exit Fee)	LIBOR(Q)	1.00	%	5.50% Cash + 4.50% PIK		11.00	%	7/25/2021	$	14,714,236	14,689,002		12,517,400		0.76	%	L/N
												17,334,765		14,778,879		0.90	%
Consumer Finance
Auto Trakk SPV, LLC	First Lien Delayed Draw Term Loan	LIBOR(M)	0.50	%	6.50	%	7.00	%	12/21/2021	$	21,708,042	21,627,288		21,708,042		1.32	%	N
Barri Financial Group, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	7.75	%	8.75	%	10/23/2024	$	16,386,623	16,058,193		16,550,489		1.00	%	N
Open Lending, LLC	First Lien Term Loan	LIBOR(M)	1.00	%	6.50	%	7.50	%	3/11/2027	$	4,906,250	4,766,726		4,893,984		0.30	%	N
												42,452,207		43,152,515		2.62	%
Diversified Consumer Services
Spark Networks, Inc.	Sr Secured Revolver	LIBOR(Q)	1.50	%	8.00	%	9.50	%	7/1/2023	$	—	(22,151)		(12,272)		—		K/N
Spark Networks, Inc.	First Lien Term Loan	LIBOR(Q)	1.50	%	8.00	%	9.50	%	7/1/2023	$	19,848,972	19,372,272		19,551,237		1.19	%	N
Spark Networks, Inc.	First Lien Term Loan	LIBOR(Q)	1.50	%	8.00	%	9.50	%	7/1/2023	$	1,207,065	1,171,712		1,188,959		0.07	%	N
Thras.io, LLC	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	7.00	%	8.00	%	12/18/2026	$	—	(248,494)		(248,494)		(0.02)	%	K/N
Thras.io, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	7.00	%	8.00	%	12/18/2026	$	15,060,241	14,683,735		14,683,735		0.89	%	K/N
												34,957,074		35,163,165		1.19	%
Diversified Financial Services
36th Street Capital Partners Holdings, LLC	Senior Note	Fixed	—		12.00	%	12.00	%	11/30/2025	$	40,834,419	40,834,419		40,834,419		2.48	%	E/F/N
Aretec Group, Inc. (Cetera)	Second Lien Term Loan	LIBOR(M)	—		8.25	%	8.40	%	10/1/2026	$	27,105,263	26,876,000		25,478,947		1.54	%	G/N
Credit Suisse AG (Cayman Islands)	Asset-Backed Credit Linked Notes	LIBOR(Q)	—		9.50	%	11.50	%	4/12/2025	$	38,000,000	38,000,000		30,856,000		1.87	%	H/I/N
GC Agile Holdings Limited (Apex) (England)	First Lien Delayed Term Loan B	LIBOR(Q)	1.25	%	7.00	%	8.25	%	6/15/2025	$	18,788,475	18,490,655		18,675,561		1.13	%	H/N
GC Agile Holdings Limited (Apex) (England)	First Lien Term Loan A	LIBOR(Q)	1.25	%	7.00	%	8.25	%	6/15/2025	$	816,583	803,983		809,070		0.05	%	H/N
RSB-160, LLC (Lat20)	First Lien Delayed Draw Term Loan	LIBOR(M)	1.00	%	6.00	%	7.00	%	7/20/2022	$	1,533,333	1,518,675		1,533,333		0.09	%	N
												126,523,732		118,187,330		7.16	%
Diversified Telecommunication Services
Aventiv Technologies, Inc. (Securus)	Second Lien Term Loan	LIBOR(Q)	1.00	%	8.25	%	9.25	%	11/1/2025	$	25,846,154	25,679,341		21,237,009		1.30	%
Telarix, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	6.00	%	7.00	%	11/19/2023	$	7,368,750	7,295,192		7,242,008		0.44	%	N
Telarix, Inc.	Sr Secured Revolver	LIBOR(Q)	1.00	%	6.00	%	7.00	%	11/19/2023	$	—	(3,204)		(6,143)		—		N
												32,971,329		28,472,874		1.74	%
Electric Utilities
Conergy Asia & ME Pte. Ltd (Singapore)	First Lien Term Loan	Fixed	—		—		—		6/30/2021	$	2,110,141	2,110,141		1,154,036		0.07	%	D/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Bank Guarantee Credit Facility	Fixed	—		—		—		12/31/2021	$	6,578,877	6,578,877		3,336,148		0.20	%	D/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Revolving Credit Facility	Fixed	—		—		—		12/31/2021	$	8,668,850	8,668,850		2,114,333		0.13	%	D/F/H/N
												17,357,868		6,604,517		0.40	%
Electrical Equipment
TCFI Amteck Holdings, LLC	First Lien Delayed Draw Term Loan	LIBOR(Q)	—		6.25	%	6.56	%	12/31/2024	$	526,131	520,301		526,131		0.03	%	N
TCFI Amteck Holdings, LLC	First Lien Term Loan	LIBOR(Q)	—		6.25	%	6.56	%	12/31/2024	$	8,722,052	8,624,256		8,722,052		0.53	%	N
												9,144,557		9,248,183		0.56	%

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Energy Equipment and Services
GlassPoint Solar, Inc.	First Lien Incremental Term Loan (4.0% Exit Fee)	LIBOR(M)	2.00	%	8.50	%	—		8/31/2021	$	4,245,365	$	4,234,930	$	1,018,888	0.06	%	C/L/N
GlassPoint Solar, Inc.	First Lien Incremental Term Loan A	LIBOR(M)	2.00	%	8.50	%	10.50	%	8/31/2021	$	210,986	210,986		210,986		0.01	%	N
GlassPoint Solar, Inc.	First Lien Term Loan (5.0% Exit Fee)	LIBOR(M)	—		11.44	%	—		8/31/2021	$	2,324,588	2,283,788		557,901		0.03	%	C/L/N
Sphera Solutions, Inc. (Diamondback)	First Lien FILO Term Loan B	LIBOR(Q)	1.00	%	7.75	%	10.76	%	6/14/2023	$	23,377,259	23,115,634		23,073,355		1.40	%	N
												29,845,338		24,861,130		1.50	%
Health Care Technology
CAREATC, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	7.25	%	8.25	%	3/14/2024	$	8,502,033	8,381,928		8,587,053		0.52	%	N
CAREATC, Inc.	Sr Secured Revolver	LIBOR(Q)	1.00	%	7.25	%	8.25	%	3/14/2024	—		(7,938)		—		—		K/N
Edifecs, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	7.50	%	8.50	%	9/21/2026	$	1,388,889	1,355,499		1,397,222		0.08	%	N
Patient Point Network Solutions, LLC	Sr Secured Revolver	LIBOR(Q)	1.00	%	8.50	%	9.50	%	6/26/2022	—		(1,824)		—		—		K/N
Patient Point Network Solutions, LLC	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	7.50	%	8.50	%	6/26/2022	$	1,172,178	1,166,548		1,172,178		0.07	%	N
Patient Point Network Solutions, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	7.50	%	8.50	%	6/26/2022	$	6,081,798	6,058,408		6,081,798		0.37	%	N
Sandata Technologies, LLC	First Lien Term Loan	LIBOR(Q)	—		6.00	%	6.31	%	7/23/2024	$	20,250,000	20,016,127		19,723,500		1.20	%	N
Sandata Technologies, LLC	Sr Secured Revolver	LIBOR(Q)	—		6.00	%	6.31	%	7/23/2024	—		(24,784)		(58,500)		—		K/N
												36,943,964		36,903,251		2.24	%
Healthcare Providers and Services
TEAM Services Group	Second Lien Term Loan	LIBOR(Q)	1.00	%	9.00	%	10.00	%	11/13/2028	$	25,000,000	24,190,557		24,812,500		1.50	%	N
Hotels, Restaurants and Leisure
Fishbowl, Inc.	First Lien Term Loan	LIBOR(Q)	—		9.75	%	10.06	%	1/26/2022	$	25,990,088	25,818,817		14,944,301		0.91	%	N
Pegasus Business Intelligence, LP (Onyx Centersource)	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	6.25	%	9.25	%	12/20/2021	$	5,648,822	5,753,482		4,818,445		0.29	%	N
Pegasus Business Intelligence, LP (Onyx Centersource)	First Lien Term Loan	LIBOR(Q)	1.00	%	6.25	%	9.25	%	12/20/2021	$	13,510,298	13,732,711		11,524,284		0.70	%	N
Pegasus Business Intelligence, LP (Onyx Centersource)	Revolver	LIBOR(Q)	1.00	%	6.25	%	9.25	%	12/20/2021	$	671,356	682,522		572,666		0.03	%	N
												45,987,532		31,859,696		1.93	%
Insurance
2-10 Holdco, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.00	%	7.00	%	10/31/2024	$	3,741,667	3,689,786		3,741,667		0.23	%	N
2-10 Holdco, Inc.	Sr Secured Revolver	LIBOR(M)	1.00	%	6.00	%	7.00	%	10/31/2024	—		(5,341)		—		—		K/N
AmeriLife Holdings, LLC	Second Lien Term Loan	LIBOR(Q)	1.00	%	8.50	%	9.50	%	3/18/2028	$	21,356,400	20,952,696		21,228,262		1.29	%	N
AmeriLife Holdings, LLC	Second Lien Incremental Term Loan	LIBOR(Q)	1.00	%	8.50	%	9.50	%	3/18/2028	$	7,454,593	7,324,604		7,409,865		0.45	%	N
IT Parent	First Lien Term Loan	LIBOR(Q)	1.00	%	6.25	%	7.25	%	10/1/2026	$	4,375,000	4,290,457		4,353,125		0.26	%	N
IT Parent	Sr Secured Revolver	LIBOR(Q)	1.00	%	6.25	%	7.25	%	10/1/2026	$	500,000	488,014		496,875		0.03	%	N
												36,740,216		37,229,794		1.97	%
Internet and Catalog Retail
Live Auctioneers LLC	First Lien Last Out B-2 Term Loan	LIBOR(Q)	1.00	%	6.76	%	7.76	%	5/21/2025	$	13,820,056	13,598,260		13,571,295		0.82	%	N
Live Auctioneers LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	6.76	%	7.76	%	5/21/2025	$	5,398,131	5,290,496		5,300,964		0.32	%	N
Syndigo, LLC	Second Lien Term Loan	LIBOR(Q)	0.75	%	8.00	%	8.75	%	12/14/2028	$	12,141,870	11,959,742		11,959,742		0.73	%	N
												30,848,498		30,832,001		3.08	%

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Internet Software and Services
Acquia Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	7.00	%	8.00	%	11/1/2025	$	16,648,997	$	16,366,935	$	16,898,731	1.02	%	N
Acquia Inc.	Sr Secured Revolver	LIBOR(Q)	1.00	%	7.00	%	8.00	%	11/1/2025	—		(29,118)		—		—		K/N
Domo, Inc.	First Lien Delayed Draw Term Loan (7.0% Exit Fee)	LIBOR(M)	1.50	%	5.50% Cash + 2.50% PIK		9.50	%	4/1/2025	$	53,464,245	53,435,610		54,640,458		3.31	%	L/N
Domo, Inc.	First Lien Term Loan	LIBOR(M)	—		9.5% PIK		9.50	%	4/1/2025	$	2,566,973	77,095		2,618,312		0.16	%	N
FinancialForce.com, Inc.	First Lien Delayed Draw Term Loan (3.0% Exit Fee)	LIBOR(M)	2.75	%	6.75	%	9.50	%	2/1/2024	$	28,000,000	27,623,116		28,336,000		1.72	%	L/N
Foursquare Labs, Inc.	First Lien Term Loan (5.0% Exit Fee)	LIBOR(M)	2.19	%	7.25	%	9.44	%	10/1/2022	$	33,750,000	33,546,196		33,817,500		2.05	%	L/N
Foursquare Labs, Inc.	First Lien Incremental Term Loan	LIBOR(M)	2.19	%	7.25	%	9.44	%	10/1/2022	$	7,500,000	7,286,941		7,477,500		0.45	%	N
Foursquare	First Lien Term Loan	LIBOR(M)	2.19	%	7.25	%	9.44	%	5/1/2023	$	2,500,000	2,475,000		2,555,000		0.15	%	N
Metricstream, Inc	First Lien Term Loan	LIBOR(Q)	1.00	%	8.00	%	9.00	%	9/28/2024	$	23,104,483	22,670,625		22,642,394		1.37	%	N
Persado, Inc.	First Lien Delayed Term Loan (4.25% Exit Fee)	LIBOR(M)	1.80	%	7.00	%	8.80	%	2/1/2025	$	8,782,078	8,708,373		8,694,258		0.53	%	L/N
Quartz Holding Company (Quick Base)	Second Lien Term Loan	LIBOR(M)	—		8.00	%	8.15	%	4/2/2027	$	9,903,019	9,729,081		9,816,367		0.60	%	N
ResearchGate GmBH (Germany)	First Lien Term Loan (4.0% Exit Fee)	EURIBOR (Q)	—		8.55	%	8.55	%	10/1/2022	€ 6,714,000		8,020,121		8,882,973		0.54	%	H/L/N/O
												189,909,975		196,379,493		11.90	%
IT Services
Puppet, Inc.	First Lien Term Loan (3.0% Exit Fee)	LIBOR(Q)	1.00	%	8.50	%	9.50	%	6/19/2023	$	13,930,936	13,609,649		13,680,179		0.83	%	L/N
Web.com Group Inc.	Second Lien Term Loan	LIBOR(M)	—		7.75	%	7.90	%	10/11/2026	$	19,277,823	19,075,749		18,498,710		1.12	%	G/J
Xactly Corporation	First Lien Incremental Term Loan B	LIBOR(Q)	1.00	%	7.25	%	8.25	%	7/31/2022	$	4,996,644	4,943,694		4,986,650		0.30	%	N
Xactly Corporation	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	7.25	%	8.25	%	7/31/2022	$	2,726,918	2,705,045		2,721,464		0.16	%	N
Xactly Corporation	First Lien Term Loan	LIBOR(Q)	1.00	%	7.25	%	8.25	%	7/31/2022	$	6,948,120	6,898,077		6,934,224		0.42	%	N
Xactly Corporation	Sr Secured Revolver	LIBOR(Q)	1.00	%	7.25	%	8.25	%	7/31/2022	—		(5,443)		(1,710)		—		K/N
												47,226,771		46,819,517		2.83	%
Leisure Products
Blue Star Sports Holdings, Inc.	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	5.75% cash + 2.00% PIK		8.75	%	6/15/2024	$	57,122	56,426		53,397		—		N
Blue Star Sports Holdings, Inc.	First Lien Revolver	LIBOR(Q)	1.00	%	5.75% cash + 2.00% PIK		8.75	%	6/15/2024	$	114,289	112,927		106,837		0.01	%	N
Blue Star Sports Holdings, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	5.75% cash + 2.00% PIK		8.75	%	6/15/2024	$	1,569,444	1,550,003		1,467,116		0.09	%	N
												1,719,356		1,627,350		0.10	%
Machinery
Sonny's Enterprises, LLC	First Lien Term Loan	LIBOR(M)	1.00	%	7.00	%	8.00	%	8/5/2026	$	3,791,553	3,715,824		3,715,722		0.23	%	K
Sonny's Enterprises, LLC	First Lien Delayed Draw Term Loan	LIBOR(M)	1.00	%	7.00	%	8.00	%	8/5/2026	—		(183,811)		(184,161)		(0.01)	%	K
												3,532,013		3,531,561		0.22	%
Media
Khoros, LLC (Lithium)	Sr Secured Revolver	LIBOR(Q)	1.00	%	8.00	%	9.00	%	10/3/2022	$	509,379	496,840		474,231		0.03	%	N
Khoros, LLC (Lithium)	Sr Secured Revolver	LIBOR(Q)	1.00	%	8.00	%	9.00	%	10/3/2022	$	151,743	147,099		141,272		0.01	%	N
Khoros, LLC (Lithium)	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	8.00	%	9.00	%	10/3/2022	$	7,131,905	7,054,572		6,967,871		0.42	%	N
Khoros, LLC (Lithium)	First Lien Term Loan	LIBOR(Q)	1.00	%	8.00	%	9.00	%	10/3/2022	$	20,884,731	20,704,358		20,404,382		1.24	%	N
NEP II, Inc.	Second Lien Term Loan	LIBOR(M)	—		7.00	%	7.15	%	10/19/2026	$	27,000,000	26,418,396		23,409,000		1.42	%	G
Quora, Inc.	First Lien Term Loan (4.0% Exit Fee)	Fixed	—		10.10	%	10.10	%	5/1/2022	$	12,692,602	12,582,602		12,768,758		0.77	%	L/N
												67,403,867		64,165,514		3.89	%
Metal and Mining
Neenah Foundry Company	First Lien Term Loan B	LIBOR(Q)	1.00	%	9.00	%	10.00	%	12/13/2022	$	6,151,857	5,905,998		5,382,875		0.33	%	N

100

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Consolidated Schedule of Investments (Continued)

December 31, 2020


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Oil, Gas and Consumable Fuels
Iracore International, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	9.00	%	10.00	%	4/13/2021	$	1,324,140	$	1,324,140	$	1,324,140	0.08	%	B/N


Personal Products
Olaplex, Inc.	Sr Secured Revolver	LIBOR(M)	1.00	%	6.50	%	7.50	%	1/8/2025	—		(22,078)		(13,400)		—		K/N
Olaplex, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.50	%	7.50	%	1/8/2026	$	13,403,873	13,168,640		13,269,835		0.80	%	N
Olaplex, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.50	%	7.50	%	1/8/2026	$	5,170,752	5,119,044		5,119,044		0.31	%	N
Paula's Choice Holdings, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.25	%	7.25	%	11/17/2025	$	20,000,000	19,452,319		19,500,000		1.18	%	N
												37,717,925		37,875,479		2.30	%
Professional Services
Applause App Quality, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	5.00	%	6.00	%	9/20/2022	$	20,772,306	20,610,750		20,772,306		1.26	%	N
Applause App Quality, Inc.	Sr Secured Revolver	LIBOR(Q)	1.00	%	5.00	%	6.00	%	9/20/2022	—		(10,443)		—		—		K/N
CIBT Solutions, Inc.	Second Lien Term Loan	LIBOR(Q)	1.00	%	7.75	%	—		6/1/2025	$	8,011,188	7,956,586		4,099,044		0.25	%	C/G/N
Dude Solutions Holdings, Inc.	Sr Secured Revolver	LIBOR(Q)	1.00	%	7.50	%	8.50	%	6/13/2025	—		(37,510)		—		—		K/N
Dude Solutions Holdings, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	7.50	%	8.50	%	6/13/2025	$	16,884,883	16,579,885		17,222,581		1.04	%	N
Dude Solutions Holdings, Inc.	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	7.50	%	8.50	%	6/13/2025	$	2,227,508	2,183,489		2,272,058		0.14	%	N
Dude Solutions Holdings, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	7.50	%	8.50	%	6/13/2025	$	3,627,272	3,510,848		3,714,327		0.23	%	N
iCIMS, Inc.	Sr Secured Revolver	LIBOR(Q)	1.00	%	6.50	%	7.50	%	9/12/2024	$	121,678	120,176		119,975		0.01	%	K/N
iCIMS, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	6.50	%	7.50	%	9/12/2024	$	2,351,073	2,315,704		2,318,158		0.14	%	N
iCIMS, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	6.50	%	7.50	%	9/12/2024	$	353,250	346,429		348,305		0.02	%	N
Institutional Shareholder Services, Inc.	Second Lien Term Loan	LIBOR(Q)	—		8.50	%	8.72	%	3/5/2027	$	5,820,856	5,672,120		5,791,752		0.35	%	N
RigUp, Inc.	First Delayed Draw Term Loan (3.5% Exit Fee)	LIBOR(M)	1.50	%	7.00	%	8.50	%	3/1/2024	$	19,333,333	18,855,629		18,811,333		1.14	%	L/N
												78,103,663		75,469,839		4.58	%
Real Estate Management and Development
Space Midco, Inc. (Archibus)	First Lien Term Loan	LIBOR(M)	—		6.25	%	6.44	%	12/5/2023	$	4,444,444	4,387,820		4,355,556		0.26	%	N
Space Midco, Inc. (Archibus)	Sr Secured Revolver	LIBOR(M)	—		6.25	%	6.44	%	12/5/2023	—		(3,393)		(5,556)		—		K/N
												4,384,427		4,350,000		0.26	%
Road and Rail
GlobalTranz Enterprises LLC	Second Lien Term Loan	LIBOR(M)	—		8.25	%	8.40	%	5/15/2027	$	19,382,324	19,045,353		16,610,652		1.01	%	N

Software
Certify, Inc.	First Lien Delayed Draw Term Loan	LIBOR(M)	1.00	%	5.75	%	6.75	%	2/28/2024	$	3,188,631	3,150,214		3,161,527		0.19	%	N
Certify, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	5.75	%	6.75	%	2/28/2024	$	23,383,293	23,314,597		23,184,535		1.41	%	N
Certify, Inc.	Sr Secured Revolver	LIBOR(M)	1.00	%	5.75	%	6.75	%	2/28/2024	$	265,719	250,220		256,685		0.02	%	K/N
Rhode Holdings, Inc. (Kaseya)	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	4% Cash+3% PIK		8.00	%	5/2/2025	$	1,732,500	1,707,152		1,744,628		0.11	%	N
Rhode Holdings, Inc. (Kaseya)	First Lien Term Loan	LIBOR(Q)	1.00	%	4% Cash+3% PIK		8.00	%	5/2/2025	$	14,616,458	14,394,168		14,719,558		0.89	%	N
Rhode Holdings, Inc. (Kaseya)	Sr Secured Revolver	LIBOR(Q)	1.00	%	6.50	%	7.50	%	5/2/2025	$	590,882	572,713		590,882		0.04	%	N
Rhode Holdings, Inc. (Kaseya)	First Lien Incremental Delayed Draw Term Loan	LIBOR(Q)	1.00	%	4% Cash+3% PIK		8.00	%	5/2/2025	—		(12,010)		5,710		—		K/N
Rhode Holdings, Inc. (Kaseya)	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	4% Cash+3% PIK		8.00	%	5/2/2025	$	1,281,602	1,262,824		1,290,573		0.08	%	N
Rhode Holdings, Inc. (Kaseya)	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	4% Cash+3% PIK		8.00	%	5/2/2025	—		(8,557)		4,905		—		K/N
Rhode Holdings, Inc. (Kaseya)	First Lien Term Loan	LIBOR(Q)	1.00	%	4% Cash+3% PIK		8.00	%	5/2/2025	$	385,419	377,820		388,117		0.02	%	N
Snow Software AB	First Lien Term Loan	LIBOR(Q)	2.00	%	6.00	%	8.00	%	4/17/2024	$	10,373,317	10,223,498		10,552,775		0.64	%	N
Snow Software AB	First Lien Incremental Term Loan	LIBOR(Q)	2.00	%	6.00	%	8.00	%	4/17/2024	$	11,543,865	11,360,297		11,743,574		0.71	%	N
Snow Software AB	Sr Secured Revolver	LIBOR(Q)	2.00	%	6.00	%	8.00	%	4/17/2024	$	1,308,164	1,248,629		1,308,164		0.08	%	N
Snow Software AB	First Lien Term Loan	LIBOR(Q)	2.00	%	6.00	%	8.00	%	4/21/2021	$	4,477,328	4,435,255		4,554,786		0.28	%	N
Superman Holdings, LLC	Sr Secured Revolver	PRIME	—		7.00	%	10.25	%	8/31/2026	—		(29,663)		—		—		K/N

101

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Consolidated Schedule of Investments (Continued)

December 31, 2020


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Superman Holdings, LLC	Sr Secured Revolver	PRIME	—		7.00	%	10.25	%	8/31/2027	$	8,820,316	$	8,608,974	$	8,855,597	0.54	%	N
Syntellis Performance Solutions, Inc	First Lien Term Loan	LIBOR(Q)	1.00	%	8.00	%	9.00	%	8/2/2027	$	21,402,299	20,783,432		21,509,310		1.30	%	N
Winshuttle, LLC	First Lien FILO Term Loan	LIBOR(M)	1.00	%	8.42	%	9.42	%	8/9/2024	$	13,867,521	13,575,211		14,075,534		0.85	%	N
												115,214,774		117,946,860		7.16	%
Specialty Retail
Calceus Acquisition, Inc. (Cole Haan)	First Lien Term Loan B	LIBOR(Q)	—		5.50	%	5.73	%	2/12/2025	$	590,021	560,513		566,420		0.03	%	N
Calceus Acquisition, Inc. (Cole Haan)	Sr Secured Notes	Fixed	—		9.75	%	9.75	%	2/19/2025	$	20,000,000	19,455,896		21,970,000		1.33	%	N
USR Parent, Inc. (Staples)	First Lien FILO Term Loan	LIBOR(M)	1.00	%	8.84	%	9.84	%	9/12/2022	$	4,588,974	4,542,337		4,634,863		0.28	%	N
												24,558,746		27,171,283		1.64	%
Textiles, Apparel and Luxury Goods
Kenneth Cole Productions, Inc.	First Lien FILO Term Loan	LIBOR(M)	1.00	%	7.75	%	8.75	%	12/28/2023	$	17,941,278	17,855,159		17,941,278		1.09	%	N
PSEB, LLC (Eddie Bauer)	First Lien FILO II Term Loan	PRIME	—		7.25	%	10.50	%	10/12/2023	$	10,793,402	10,603,924		10,793,402		0.65	%	N
PSEB, LLC (Eddie Bauer)	First Lien Term Loan	LIBOR(Q)	1.50	%	8.00	%	9.50	%	10/12/2023	$	37,237,236	36,598,542		37,795,794		2.30	%	N
WH Buyer, LLC (Anne Klein)	First Lien Term Loan	LIBOR(Q)	1.50	%	7.76	%	9.26	%	7/16/2025	$	27,664,640	27,429,571		27,498,652		1.68	%	N
WH Buyer, LLC (Anne Klein)	First Lien Incremental Term Loan	LIBOR(Q)	1.50	%	7.76	%	9.26	%	7/16/2025	$	5,307,692	5,260,224		5,275,846		0.32	%	N
												97,747,420		99,304,972		6.04	%
Thrifts and Mortgage Finance
Greystone Select Holdings, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	8.00	%	9.00	%	4/17/2024	$	24,579,526	24,469,428		24,825,321		1.51	%	N
Home Partners of America, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.25	%	7.25	%	10/13/2022	$	2,857,143	2,836,813		2,857,143		0.17	%	N
												27,306,241		27,682,464		1.68	%
Tobacco Related
Juul Labs, Inc.	First Lien Term Loan	LIBOR(Q)	1.50	%	8.00	%	9.50	%	8/2/2023	$	26,452,995	26,264,571		26,400,089		1.60	%	N

Total Debt Investments - 188.9% of Net Assets												1,488,638,125		1,444,803,932		87.59	%

102

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020


Issuer	Instrument	Expiration	Shares	Cost		Fair Value		% of Total Cash and Investments		Notes

Equity Securities
Airlines
Epic Aero, Inc (One Sky)	Common Stock		1,842	855,313		11,346,069		0.69	%	D/N
Automobiles
AutoAlert Acquisition Co, LLC	Warrants to Purchase LLC Interest	6/28/2030	7	2,910,423		2,818,737		0.17	%	D/E/N
Capital Markets
Pico Quantitative Trading, LLC	Warrants to Purchase Membership Units (144A)	2/7/2030	287	645,121		697,010		0.04	%	D/E/N
Chemicals
AGY Holding Corp.	Series A Preferred Stock		1,786,785	485,322		663,166		0.04	%	D/N
AGY Holding Corp.	Series B Preferred Stock		1,250,749	—		—		—		D/N
AGY Holding Corp.	Common Stock		982,732	—		—		—		D/N
				485,322		663,166		0.04	%
Communications Equipment
Avanti Communications Group, PLC (United Kingdom)	Common Stock		26,576,710	4,902,674		—		—		D/E/H/N/O
Diversified Consumer Services
TVG-Edmentum Holdings, LLC	Series A Preferred Stock		27,603,779	27,603,779		27,758,980		1.68	%	B/E
TVG-Edmentum Holdings, LLC	Series B-1 Common Stock		13,421,162	13,421,162		13,511,732		0.82	%	B/E
TVG-Edmentum Holdings, LLC	Series B-2 Common Stock		13,421,162	13,421,162		12,868,247		0.78	%	B/D/E
				54,446,103		54,138,959		3.28	%
Diversified Financial Services
36th Street Capital Partners Holdings, LLC	Membership Units		22,199,416	$	22,199,416	$	33,135,000	2.01	%	E/F/N
Conventional Lending TCP Holdings, LLC	Membership Units		19,000,869	19,000,869		18,050,826		1.09	%	E/F/I/N
GACP I, LP (Great American Capital)	Membership Units		1,392,896	1,392,896		1,995,210		0.12	%	E/I/N
GACP II, LP (Great American Capital)	Membership Units		15,980,492	15,980,492		17,341,570		1.05	%	E/I/N
				58,573,673		70,522,606		4.27	%
Electric Utilities
Conergy Asia Holdings Limited (United Kingdom)	Class B Shares		1,000,000	1,000,000		—		—		D/E/F/H/N
Conergy Asia Holdings Limited (United Kingdom)	Ordinary Shares		3,333	7,833,333		—		—		D/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Ordinary Shares		2,332,594	—		—		—		D/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Series B Preferred Shares		93,023	1,395,349		—		—		D/E/F/H/N
Utilidata, Inc.	Common Stock		29,094	216,336		—		—		D/E
Utilidata, Inc.	Series C Preferred Stock		257,369	153,398		229,000		0.01	%	D/E
Utilidata, Inc.	Series CC Preferred Stock		500,000	500,000		23,000		—		D/E
				11,098,416		252,000		0.01	%
Electrical Equipment
TCFI Amteck Holdings, LLC	Series A Preferred Units		8,020,824	7,511,391		8,117,074		0.50	%	N
TCFI Amteck Holdings, LLC	Common Units		362,513	395,336		8,845,317		0.55	%	D/N
				7,906,727		16,962,391		1.05	%
Electronic Equipment, Instruments and Components
Soraa, Inc.	Warrants to Purchase Preferred Stock	8/29/2024	3,071,860	478,899		—		—		D/E/N
Energy Equipment and Services
GlassPoint Solar, Inc.	Warrants to Purchase Series E Preferred Stock	2/7/2027	400,000	248,555		—		—		D/E/N

103

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Consolidated Schedule of Investments (Continued)

December 31, 2020


Issuer	Instrument	Expiration	Shares	Cost		Fair Value		% of Total Cash and Investments		Notes
Equity Securities (continued)
GlassPoint Solar, Inc.	Warrants to Purchase Series E Preferred Stock	2/7/2027	2048000	505,450		—		—		D/E/N
				754,005		—		—
Internet Software and Services
Domo, Inc.	Warrants to Purchase Class B Common Stock	8/7/2023	49,792	1,543,054		3,175,236		0.19	%	D/E
FinancialForce.com, Inc.	Warrants to Purchase Series C Preferred Stock	1/30/2029	840,000	287,985		385,600		0.02	%	D/E/N
Foursquare Labs, Inc.	Warrants to Purchase Series E Preferred Stock	5/4/2027	2,062,500	508,805		1,144,786		0.07	%	D/E/N
InMobi, Inc. (Singapore)	Warrants to Purchase Common Stock	8/15/2027	1,327,869	212,360		422,705		0.03	%	D/E/H/N
InMobi, Inc. (Singapore)	Warrants to Purchase Series E Preferred Stock (Strike Price $20.01)	9/18/2025	1,049,996	276,492		514,918		0.03	%	D/E/H/N
InMobi, Inc. (Singapore)	Warrants to Purchase Series E Preferred Stock (Strike Price $28.58)	10/3/2028	1,511,002	93,407		541,900		0.03	%	D/E/H/N
ResearchGate Corporation (Germany)	Warrants to Purchase Series D Preferred Stock	10/30/2029	333,370	202,001		110,000		0.01	%	D/E/H/N/O
Snaplogic, Inc.	Warrants to Purchase Series Preferred Stock	3/19/2028	1,860,000	377,722		5,200,000		0.32	%	D/E/N
				3,501,826		11,495,145		0.70	%
IT Services
Fidelis (SVC), LLC	Preferred Units		657,932	$	2,001,384	$	75,613	—		D/E/N
Life Sciences Tools and Services
Envigo RMS Holdings Corp.	Common Stock		36,413	—		235,228		0.01	%	D/E/N
Media
NEG Parent, LLC (Core Entertainment, Inc.)	Class A Units		2,720,392	2,772,807		7,401,888		0.45	%	B/D/E/N
NEG Parent, LLC (Core Entertainment, Inc.)	Class A Warrants to Purchase Class A Units	10/17/2026	343,387	196,086		438,161		0.03	%	B/D/E/N
NEG Parent, LLC (Core Entertainment, Inc.)	Class B Warrants to Purchase Class A Units	10/17/2026	346,794	198,032		442,508		0.03	%	B/D/E/N
Quora, Inc.	Warrants to Purchase Series D Preferred Stock	4/11/2029	507,704	65,245		105,095		0.01	%	D/E/N
SoundCloud, Ltd. (United Kingdom)	Warrants to Purchase Preferred Stock	4/29/2025	946,498	79,082		45,143		—		D/E/H/N
				3,311,252		8,432,795		0.52	%
Oil, Gas and Consumable Fuels
Iracore Investments Holdings, Inc.	Class A Common Stock		16,207	4,177,707		5,181,526		0.31	%	B/D/E/N
Professional Services
Anacomp, Inc.	Class A Common Stock		1,255,527	26,711,048		401,769		0.02	%	D/E/F/N
Semiconductors and Semiconductor Equipment
Nanosys, Inc.	Warrants to Purchase Preferred Stock	3/29/2023	800,000	605,266		962,482		0.06	%	D/E/N
Software
Actifio, Inc.	Warrants to Purchase Series G Preferred Stock	5/5/2027	1,052,651	188,770		71,292		—		D/E/N
Tradeshift, Inc.	Warrants to Purchase Series D Preferred Stock	3/26/2027	1,712,930	577,843		503,762		0.03	%	D/E/N
				766,613		575,054		0.03	%

Total Equity Securities - 24.2% of Net Assets				184,131,772		184,760,550		11.20	%

Total Investments - 213.0% of Net Assets				$	1,672,769,897	$	1,629,564,482

Cash and Cash Equivalents
Cash Held on Account at Various Institutions						20,006,580		1.21	%
Cash and Cash Equivalents						20,006,580		1.21	%

Total Cash and Investments - 215.6% of Net Assets						$	1,649,571,062	100.00	%	M

104

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

Notes to Consolidated Schedule of Investments:

(A)Debt investments include investments in bank debt that generally are bought and sold among institutional investors in transactions not subject to registration under the Securities Act of 1933. Such transactions are generally subject to contractual restrictions, such as approval of the agent or borrower.

(B)Non-controlled affiliate – as defined under the Investment Company Act of 1940 (ownership of between 5% and 25% of the outstanding voting securities of this issuer). See Consolidated Schedule of Changes in Investments in Affiliates.

(C)Non-accruing debt investment

(D)Other non-income producing investment.

(E)Restricted security. (See Note 2)

(F)Controlled issuer – as defined under the Investment Company Act of 1940 (ownership of 25% or more of the outstanding voting securities of this issuer). Investment is not more than 50% of the outstanding voting securities of the issuer nor deemed to be a significant subsidiary. See Consolidated Schedule of Changes in Investments in Affiliates.

(G)Investment has been segregated to collateralize certain unfunded commitments.

(H)Non-U.S. company or principal place of business outside the U.S. and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(I)Deemed an investment company under Section 3(c) of the Investment Company Act and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(J)Publicly traded company with a market capitalization greater than $250 million and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(K)Negative balances relate to an unfunded commitment that was acquired and/or valued at a discount.

(L)In addition to the stated coupon, investment has an exit fee payable upon repayment of the loan in an amount equal to the percentage of the original principal amount shown.

(M)All cash and investments, except those referenced in Notes G above, are pledged as collateral under certain debt as described in Note 4 to the Consolidated Financial Statements.

(N) Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole.

(O)Investment denominated in foreign currency. Amortized cost and fair value converted from foreign currency to US dollars. Foreign currency denominated investments are generally hedged for currency exposure.

LIBOR or EURIBOR resets monthly (M), quarterly (Q), semiannually (S), or annually (A).

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $460,153,100 and $480,719,625, respectively, for the year ended December 31, 2020. Aggregate acquisitions includes investment assets received as payment in kind. Aggregate dispositions includes principal paydowns on and maturities of debt investments. The total value of restricted securities and bank debt as of December 31, 2020 was $1,548,430,022 or 93.9% of total cash and investments of the Company. As of December 31, 2020, approximately 7.7% of the total assets of the Company were not qualifying assets under Section 55(a) of the 1940 Act.

See accompanying notes to the consolidated financial statements.

105

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments

December 31, 2019


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (A)
Aerospace and Defense
Unanet, Inc.	First Lien Delayed Draw Term Loan	LIBOR(M)	—		6.25	%	8.06	%	5/31/2024	$	5,127,551	$	5,059,515	$	5,135,971	0.30	%	N
Unanet, Inc.	First Lien Term Loan	LIBOR(M)	—		6.25	%	8.06	%	5/31/2024	$	19,897,959	19,710,909		19,919,847		1.18	%	N
Unanet, Inc.	Sr Secured Revolver	LIBOR(M)	—		6.25	%	8.06	%	5/31/2024	$	—	(21,632)		—		—		K/N
												24,748,792		25,055,818		1.48	%
Airlines
Mesa Air Group, Inc.	Junior Loan Agreement (N902FJ)	LIBOR(Q)	—		7.50	%	9.41	%	2/1/2022	$	801,784	797,527		801,784		0.05	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N903FJ)	LIBOR(Q)	—		7.50	%	9.41	%	2/1/2022	$	942,947	937,941		942,947		0.06	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N904FJ)	LIBOR(Q)	—		7.50	%	9.41	%	2/1/2022	$	1,066,574	1,060,912		1,066,574		0.06	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N905FJ)	LIBOR(Q)	—		7.50	%	9.41	%	2/1/2022	$	768,185	764,107		768,185		0.05	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N906FJ)	LIBOR(Q)	—		7.50	%	9.41	%	5/1/2022	$	817,276	812,522		817,276		0.05	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N907FJ)	LIBOR(Q)	—		7.50	%	9.41	%	5/1/2022	$	853,632	848,667		853,632		0.05	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N908FJ)	LIBOR(Q)	—		7.50	%	9.41	%	5/1/2022	$	1,272,196	1,264,796		1,272,196		0.08	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N909FJ)	LIBOR(Q)	—		7.50	%	9.41	%	8/1/2022	$	581,841	578,354		581,841		0.03	%	N
Mesa Air Group, Inc.	Junior Loan Agreement (N910FJ)	LIBOR(Q)	—		7.50	%	9.41	%	8/1/2022	$	554,715	551,390		554,715		0.03	%	N
Mesa Airlines, Inc.	Aircraft Acquisition Incremental Loan	LIBOR(M)	—		5.25	%	7.00	%	9/27/2023	$	2,655,121	2,623,792		2,620,870		0.15	%	N
Mesa Airlines, Inc.	Aircraft Acquisition Loan	LIBOR(M)	—		5.00	%	6.75	%	6/5/2023	$	21,683,485	21,440,802		21,653,129		1.28	%	N
One Sky Flight, LLC	First Lien Term Loan	LIBOR(M)	1.00	%	7.50	%	9.30	%	12/27/2024	$	12,500,000	12,187,500		12,250,000		0.72	%	N
												43,868,310		44,183,149		2.61	%
Automobiles
AutoAlert, LLC	First Lien Incremental Term Loan	LIBOR(Q)	0.25	%	5.75% Cash+3.00% PIK		10.88	%	1/1/2022	$	38,966,342	38,845,649		39,356,005		2.32	%	N
AutoAlert, LLC	First Lien Term Loan	LIBOR(Q)	0.25	%	5.75% Cash+3.00% PIK		10.88	%	1/1/2022	$	15,420,901	15,313,907		15,575,110		0.92	%	N
DealerFX, Inc.	First Lien Term Loan	LIBOR(Q)	—		6.25% Cash+2.00% PIK		10.25	%	2/1/2023	$	16,183,673	15,965,712		16,345,510		0.96	%	N
												70,125,268		71,276,625		4.20	%
Building Products
Dodge Data & Analytics, LLC	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	7.00	%	9.00	%	5/1/2020	$	875,631	875,023		875,106		0.05	%	N
Dodge Data & Analytics, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	7.00	%	9.00	%	5/1/2020	$	35,420,561	35,395,034		35,399,308		2.09	%	N
												36,270,057		36,274,414		2.14	%
Capital Markets
HighTower Holding, LLC	Second Lien Term Loan	LIBOR(M)	1.00	%	8.75	%	10.49	%	1/31/2026	$	15,080,645	14,733,952		15,082,153		0.89	%	N
HighTower Holding, LLC	Second Lien Delayed Draw Term Loan	LIBOR(M)	1.00	%	8.75	%	10.49	%	1/31/2026	$	6,169,355	6,059,721		6,169,972		0.36	%	N
												20,793,673		21,252,125		1.25	%
Chemicals
AGY Holding Corp.	Second Lien Notes	Fixed	—		11.00	%	11.00	%	11/15/2020	$	10,315,515	8,778,822		3,708,428		0.22	%	B/C/E/N
AGY Holding Corp.	Delayed Draw Term Loan	Fixed	—		12.00	%	12.00	%	9/15/2020	$	1,114,120	1,114,120		1,114,120		0.07	%	B/N
AGY Holding Corp.	Sr Secured Term Loan	Fixed	—		12.00	%	12.00	%	9/15/2020	$	5,171,151	5,171,151		5,171,151		0.31	%	B/N
												15,064,093		9,993,699		0.60	%

106

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes




Debt Investments (continued)
Commercial Services and Supplies
Kellermeyer Bergensons Services, LLC	First Lien Delayed Draw Term Loan A	LIBOR(M)	1.00	%	6.50	%	8.39	%	11/7/2026	$	—	$	—	$	(13,529)	—		K/N
Kellermeyer Bergensons Services, LLC	First Lien Delayed Draw Term Loan B	LIBOR(M)	1.00	%	6.50	%	8.39	%	11/7/2026	$	—	—		(17,647)		—		K/N
Kellermeyer Bergensons Services, LLC	First Lien Term Loan	LIBOR(M)	1.00	%	6.50	%	8.39	%	11/7/2026	$	6,535,948	6,472,583		6,477,124		0.38	%	N
Team Software, Inc.	First Lien Incremental Term Loan	LIBOR(Q)	—		5.50	%	7.50	%	9/17/2023	$	7,220,080	7,114,156		7,172,428		0.42	%	N
Team Software, Inc.	First Lien Revolver	LIBOR(Q)	—		5.50	%	7.50	%	9/17/2023	$	1,228,924	1,189,152		1,205,750		0.07	%	N
Team Software, Inc.	First Lien Term Loan	LIBOR(Q)	—		5.50	%	7.50	%	9/17/2023	$	13,167,038	13,012,854		13,080,136		0.77	%	N
												27,788,745		27,904,262		1.64	%
Communications Equipment
Avanti Communications Jersey Limited	1.5 Lien Delayed Draw Term Loan (2.5% Exit Fee)	Fixed	—		12.50	%	12.50	%	5/24/2021	$	1,214,371	1,214,371		1,214,371		0.07	%	L/N
Avanti Communications Jersey Limited	1.5 Lien Term Loan (2.5% Exit Fee)	Fixed	—		12.50	%	12.50	%	5/24/2021	$	282,820	238,768		282,820		0.02	%	L/N
Avanti Communications Group, PLC (United Kingdom)	Sr New Money Initial Note	Fixed	—		9.00% PIK		9.00	%	10/1/2022	$	1,592,934	1,591,586		1,074,115		0.06	%	C/E/G/H/N
Avanti Communications Group, PLC (United Kingdom)	Sr Second-Priority PIK Toggle Note	Fixed	—		9.00% PIK		9.00	%	10/1/2022	$	4,064,721	4,064,219		2,740,841		0.16	%	C/E/G/H/N
												7,108,944		5,312,147		0.31	%
Construction and Engineering
Hylan Datacom & Electrical, LLC	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	9.50	%	11.41	%	7/25/2021	$	2,536,311	2,502,108		2,090,739		0.12	%	N
Hylan Datacom & Electrical, LLC	First Lien Term Loan (5.4% Exit Fee)	LIBOR(Q)	1.00	%	9.50	%	11.41	%	7/25/2021	$	14,031,084	13,959,042		11,566,142		0.67	%	L/N
												16,461,150		13,656,881		0.79	%
Construction Materials
Brannan Sand and Gravel Company, LLC	First Lien Term Loan	LIBOR(Q)	—		5.25	%	7.25	%	7/3/2023	$	6,682,556	6,612,301		6,652,484		0.39	%	N

Consumer Finance
Auto Trakk SPV, LLC	First Lien Delayed Draw Term Loan	LIBOR(M)	0.50	%	6.50	%	8.24	%	12/21/2021	$	23,971,792	23,800,742		23,749,039		1.40	%	N
Barri Financial Group, LL	First Lien Term Loan	LIBOR(M)	1.00	%	7.75	%	9.54	%	10/23/2024	$	19,346,662	18,873,298		19,031,311		1.12	%	N
												42,674,040		42,780,350		2.52	%
Diversified Consumer Services
Edmentum, Inc.	Jr Revolving Facility	Fixed	—		5.00	%	5.00	%	6/9/2020	$	5,235,973	5,235,973		5,235,978		0.31	%	B/N
Edmentum, Inc.	First Lien Term Loan B	LIBOR(Q)	—		8.50	%	10.43	%	6/9/2021	$	10,740,023	9,566,580		10,740,023		0.63	%	B/N
Edmentum, Inc.	Second Lien Term Loan	Fixed	—		7.00% PIK		7.00	%	12/8/2021	$	8,281,653	8,281,653		8,281,661		0.49	%	B/N
Edmentum Ultimate Holdings, LLC	Jr PIK Notes	Fixed	—		10.00% PIK		10.00	%	6/9/2020	$	17,609,276	17,536,516		17,609,276		1.04	%	B/N
Edmentum Ultimate Holdings, LLC	Sr PIK Notes	Fixed	—		8.50% PIK		8.50	%	6/9/2020	$	3,675,888	3,675,888		3,675,888		0.22	%	B/N
Spark Networks, Inc.	Sr Secured Revolver	LIBOR(Q)	1.50	%	8.00	%	9.95	%	7/1/2023	$	—	(30,874)		(38,827)		—		K/N
Spark Networks, Inc.	First Lien Term Loan	LIBOR(Q)	1.50	%	8.00	%	9.95	%	7/1/2023	$	22,934,229	22,203,944		22,062,728		1.30	%	N
												66,469,680		67,566,727		3.99	%
Diversified Financial Services
36th Street Capital Partners Holdings, LLC	Senior Note	Fixed	—		12.00	%	12.00	%	11/1/2020	$	40,834,419	40,834,418		40,834,419		2.41	%	E/F/N/O
Aretec Group, Inc. (Cetera)	Second Lien Term Loan	LIBOR(M)	—		8.25	%	10.05	%	10/1/2026	$	27,105,263	26,845,399		26,788,945		1.58	%	G
Credit Suisse AG (Cayman Islands)	Asset-Backed Credit Linked Notes	LIBOR(Q)	—		9.50	%	11.45	%	4/12/2025	$	38,000,000	38,000,000		37,604,800		2.22	%	H/I/N
GC Agile Holdings Limited (Apex) (England)	First Lien Delayed Term Loan B	LIBOR(Q)	1.00	%	7.00	%	9.11	%	6/15/2025	$	18,979,469	18,625,118		18,629,867		1.10	%	H/N
GC Agile Holdings Limited (Apex) (England)	First Lien Term Loan A	LIBOR(Q)	1.00	%	7.00	%	9.11	%	6/15/2025	$	824,958	810,028		809,366		0.05	%	H/N
RSB-160, LLC (Lat20)	First Lien Delayed Draw Term Loan	LIBOR(M)	1.00	%	6.00	%	7.90	%	7/20/2022	$	2,333,333	2,299,659		2,335,900		0.14	%	N
												127,414,622		127,003,297		7.50	%

107

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Diversified Telecommunication Services
American Broadband Holding Company	First Lien Term Loan	LIBOR(M)	1.25	%	7.25	%	9.05	%	10/25/2022	$	15,395,873	$	15,151,000	$	15,796,166	0.93	%	N
ECI Macola/Max Holding, LLC	Second Lien Term Loan	LIBOR(Q)	1.00	%	8.00	%	9.94	%	9/29/2025	$	24,840,563	24,660,905		24,571,540		1.45	%
Securus Technologies, Inc.	Second Lien Term Loan	LIBOR(M)	1.00	%	8.25	%	10.05	%	11/1/2025	$	25,846,154	25,648,456		12,509,538		0.74	%
TPC Intermediate Holdings, LLC	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	6.00	%	7.94	%	5/15/2023	$	799,588	787,670		796,310		0.05	%	N
TPC Intermediate Holdings, LLC	First Lien Incremental Delayed Draw Term Loan	LIBOR(Q)	1.00	%	6.00	%	7.94	%	5/15/2020	$	525,686	519,722		522,453		0.03	%	N
TPC Intermediate Holdings, LLC	First Lien Incremental Delayed Draw Term Loan A	LIBOR(Q)	1.00	%	6.00	%	7.94	%	10/31/2020	$	—	—		(16,811)		—		K/N
Telarix, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.00	%	7.80	%	11/19/2023	$	7,443,750	7,348,457		7,349,959		0.43	%	N
Telarix, Inc.	Sr Secured Revolver	LIBOR(M)	1.00	%	6.00	%	7.80	%	11/19/2023	$	178,571	174,365		174,071		0.01	%	N
												74,290,575		61,703,226		3.64	%
Electric Utilities
Conergy Asia & ME Pte. Ltd (Singapore)	First Lien Term Loan	Fixed	—		10.00	%	10.00	%	5/26/2020	$	1,773,807	1,773,807		1,207,785		0.07	%	F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Bank Guarantee Credit Facility	Fixed	—		—		0.00	%	5/26/2020	$	6,578,877	6,578,877		3,289,438		0.19	%	C/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Revolving Credit Facility	Fixed	—		—		0.00	%	5/26/2020	$	8,668,850	8,668,850		2,208,823		0.13	%	C/F/H/N
Utilidata, Inc.	First Lien Delayed Draw Term Loan (4.0% Exit Fee)	LIBOR(Q)	—		9.88	%	11.81	%	7/1/2020	$	1,033,398	1,024,722		942,562		0.06	%	L/N
												18,046,256		7,648,608		0.45	%
Electrical Equipment
TCFI Amteck Holdings, LLC	First Lien Delayed Draw Term Loan	LIBOR(M)	—		8.25	%	9.75	%	5/22/2023	$	497,143	490,068		497,143		0.03	%	N
TCFI Amteck Holdings, LLC	First Lien Term Loan	LIBOR(M)	—		8.25	%	9.75	%	5/22/2023	$	16,237,115	16,003,295		16,237,115		0.96	%	N
												16,493,363		16,734,258		0.99	%
Energy Equipment and Services
GlassPoint Solar, Inc.	First Lien Term Loan (4.0% Exit Fee)	LIBOR(Q)	—		8.50	%	10.44	%	12/31/2020	$	4,167,831	4,147,728		3,999,033		0.24	%	L/N
GlassPoint Solar, Inc.	First Lien Term Loan (5.0% Exit Fee)	LIBOR(Q)	—		11.44	%	13.38	%	12/31/2020	$	2,276,123	2,204,998		2,226,731		0.13	%	L/N
Sphera Solutions, Inc. (Diamondback)	First Lien FILO Term Loan B	LIBOR(Q)	2.00	%	8.81	%	10.81	%	6/14/2022	$	23,614,465	23,255,646		23,371,236		1.38	%	N
												29,608,372		29,597,000		1.75	%
Health Care Technology
CAREATC, Inc.	First Lien Term Loan	LIBOR(M)	—		7.25	%	9.14	%	3/14/2024	$	8,502,033	8,351,441		8,483,328		0.50	%	N
CAREATC, Inc.	Sr Secured Revolver	LIBOR(M)	—		7.25	%	9.14	%	3/14/2024	$	—	(10,223)		(1,336)		—		K/N
Patient Point Network Solutions, LLC	Sr Secured Revolver	LIBOR(Q)	1.00	%	7.50	%	9.44	%	6/26/2022	$	264,285	261,418		262,347		0.02	%	N
Patient Point Network Solutions, LLC	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	7.50	%	9.44	%	6/26/2022	$	1,239,799	1,229,504		1,234,344		0.07	%	N
Patient Point Network Solutions, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	7.50	%	9.44	%	6/26/2022	$	6,432,648	6,389,679		6,404,344		0.38	%	N
Sandata Technologies, LLC	First Lien Term Loan	LIBOR(Q)	—		6.00	%	8.00	%	7/23/2024	$	20,250,000	19,961,722		19,942,200		1.18	%	N
Sandata Technologies, LLC	Sr Secured Revolver	LIBOR(Q)	—		6.00	%	8.00	%	7/23/2024	$	—	(30,795)		(34,200)		—		K/N
												36,152,746		36,291,027		2.15	%

108

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Hotels, Restaurants and Leisure
Fishbowl, Inc.	First Lien Term Loan	LIBOR(Q)	—		2.80% Cash + 8.45% PIK		13.25	%	1/26/2022	$	24,564,304	$	24,250,372	$	22,591,790	1.33	%	N
Pegasus Business Intelligence, LP (Onyx Centersource)	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	6.25	%	8.20	%	12/20/2021	$	5,678,264	5,678,264		5,735,615		0.34	%	N
Pegasus Business Intelligence, LP (Onyx Centersource)	First Lien Term Loan	LIBOR(Q)	1.00	%	6.25	%	8.20	%	12/20/2021	$	13,583,579	13,524,243		13,720,773		0.81	%	N
Pegasus Business Intelligence, LP (Onyx Centersource)	Revolver	LIBOR(Q)	1.00	%	6.25	%	8.20	%	12/20/2021	$	—	(2,686)		—		—		K/N
VSS-Southern Holdings, LLC (Southern Theatres)	First Lien Term Loan	LIBOR(Q)	1.00	%	6.50% Cash + 2.00% PIK		10.44	%	3/31/2022	$	2,395,992	2,373,398		2,443,913		0.14	%	N
VSS-Southern Holdings, LLC (Southern Theatres)	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	6.50% Cash + 2.00% PIK		10.44	%	3/31/2022	$	142,889	141,895		145,747		0.01	%	N
VSS-Southern Holdings, LLC (Southern Theatres)	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	6.50	%	8.44	%	3/31/2022	$	550,909	550,909		561,927		0.03	%	N
VSS-Southern Holdings, LLC (Southern Theatres)	Sr Secured Revolver	LIBOR(Q)	1.00	%	6.50% Cash + 2.00% PIK		10.44	%	3/31/2022	$	—	(6,733)		—		—		K/N
												46,509,662		45,199,765		2.66	%
Insurance
2-10 Holdco, Inc.	First Lien Term Loan	LIBOR(M)	—		6.25	%	8.05	%	10/31/2024	$	4,537,500	4,461,178		4,479,420		0.26	%	N
2-10 Holdco, Inc.	Sr Secured Revolver	LIBOR(M)	—		6.25	%	8.05	%	10/31/2024	$	—	(6,724)		(5,333)		—		K/N
Higginbotham Insurance Agency, Inc.	Second Lien Term Loan	LIBOR(M)	1.00	%	7.50	%	9.30	%	12/19/2025	$	28,000,000	27,801,191		27,860,000		1.64	%	N
IAS Investco, Inc.	First Lien Delayed Draw Term Loan A	LIBOR(M)	1.00	%	5.50	%	7.30	%	1/24/2021	$	5,318,571	5,296,361		5,295,702		0.31	%	N
IAS Investco, Inc.	First Lien Delayed Draw Term Loan B	LIBOR(M)	1.00	%	5.50	%	7.30	%	1/24/2021	$	1,714,286	1,708,138		1,706,914		0.10	%	N
IAS Investco, Inc.	First Lien Incremental Term Loan	LIBOR(M)	1.00	%	5.50	%	7.30	%	1/24/2021	$	6,020,424	6,002,687		5,994,536		0.35	%	N
IAS Investco, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	5.50	%	7.30	%	1/24/2021	$	3,934,469	3,918,004		3,917,550		0.23	%	N
												49,180,835		49,248,789		2.89	%
Internet and Catalog Retail
Live Auctioneers LLC	First Lien Last Out B-2 Term Loan	LIBOR(M)	—		6.76	%	8.56	%	5/20/2025	$	13,960,362	13,698,968		13,635,085		0.79	%	N

Internet Software and Services
Acquia Inc.	First Lien Term Loan	LIBOR(Q)	—		7.00	%	8.91	%	11/1/2025	$	16,648,997	16,321,473		16,345,985		0.96	%	N
Acquia Inc.	Sr Secured Revolver	LIBOR(Q)	—		7.00	%	8.91	%	11/1/2025	$	—	(35,084)		(32,829)		—		K/N
Domo, Inc.	First Lien Delayed Draw Term Loan (7.0% Exit Fee)	LIBOR(M)	—		5.63% Cash + 2.50% PIK		9.94	%	10/1/2022	$	52,127,502	51,828,896		51,270,531		3.03	%	L/N
FinancialForce.com, Inc.	First Lien Delayed Draw Term Loan (3.0% Exit Fee)	LIBOR(Q)	2.75	%	6.75	%	9.50	%	2/1/2024	$	28,000,000	27,522,676		28,464,800		1.68	%	L/N
Foursquare Labs, Inc.	First Lien Term Loan (5.0% Exit Fee)	LIBOR(Q)	—		7.25	%	9.19	%	10/1/2022	$	33,750,000	33,445,277		33,237,000		1.96	%	L/N
InMobi, Inc. (Singapore)	First Lien Term Loan	LIBOR(Q)	1.37	%	8.13	%	10.06	%	9/30/2021	$	30,906,865	30,717,380		30,545,254		1.80	%	H/N
Quartz Holding Company (Quick Base)	Second Lien Term Loan	LIBOR(M)	—		8.00	%	9.71	%	4/2/2027	$	9,903,019	9,708,757		9,878,261		0.58	%	N
ResearchGate GmBH (Germany)	First Lien Term Loan (4.0% Exit Fee)	EURIBOR (M)	—		8.55	%	8.55	%	10/1/2022	€	7,500,000	7,856,974		7,952,439		0.47	%	D/H/L/N
												177,366,349		177,661,441		10.48	%
IT Services
Apptio, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	7.25	%	8.96	%	1/10/2025	$	11,812,993	11,598,319		11,567,282		0.68	%	N
Apptio, Inc.	Sr Secured Revolver	LIBOR(M)	1.00	%	7.25	%	8.96	%	1/10/2025	$	—	(12,904)		(16,000)		—		K/N
Donuts Inc.	First Lien Revolver	LIBOR(M)	1.00	%	6.25	%	8.15	%	9/17/2023	$	373,849	350,320		364,746		0.02	%	N
Donuts Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	6.25	%	8.19	%	9/17/2023	$	10,910,690	10,653,623		10,814,676		0.64	%	N
Web.com Group Inc.	Second Lien Term Loan	LIBOR(M)	—		7.75	%	9.49	%	10/11/2026	$	16,280,678	16,166,395		15,715,983		0.93	%	G/J
Xactly Corporation	First Lien Incremental Term Loan B	LIBOR(M)	1.00	%	7.25	%	9.05	%	7/31/2022	$	4,996,644	4,913,115		4,990,148		0.29	%	N
Xactly Corporation	First Lien Incremental Term Loan	LIBOR(M)	1.00	%	7.25	%	9.05	%	7/31/2022	$	2,726,918	2,692,315		2,723,373		0.16	%	N
Xactly Corporation	First Lien Term Loan	LIBOR(M)	1.00	%	7.25	%	9.05	%	7/31/2022	$	16,397,517	16,210,453		16,376,200		0.97	%	N
Xactly Corporation	Sr Secured Revolver	LIBOR(M)	1.00	%	7.25	%	9.05	%	7/31/2022	$	—	(14,579)		(1,827)		—		K/N
												62,557,057		62,534,581		3.69	%

109

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity	Principal		Cost		Fair Value		% of Total Cash and Investments		Notes

Debt Investments (continued)
Leisure Products
Blue Star Sports Holdings, Inc.	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00	%	5.75	%	7.76	%	6/15/2024	$	55,556	$	54,693	$	53,556	—		N
Blue Star Sports Holdings, Inc.	First Lien Revolver	LIBOR(M)	1.00	%	5.75	%	7.55	%	6/15/2024	$	111,111	108,557		105,111		0.01	%	N
Blue Star Sports Holdings, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	5.75	%	7.55	%	6/15/2024	$	1,504,611	1,480,597		1,450,445		0.09	%	N
Machine Zone, Inc.	First Lien Term Loan (10.0% Exit Fee)	LIBOR(M)	—		13.50	%	15.20	%	2/1/2021	$	5,672,712	5,637,816		5,588,188		0.33	%	L/N
												7,281,663		7,197,300		0.43	%
Media
Bisnow, LLC	First Lien Revolver	LIBOR(Q)	—		7.50	%	9.63	%	9/21/2022	$	—	(10,270)		—		—		K/N
Bisnow, LLC	First Lien Term Loan	LIBOR(Q)	—		7.50	%	9.63	%	9/21/2022	$	10,557,386	10,446,491		10,628,121		0.63	%	N
Khoros, LLC (Lithium)	Sr Secured Revolver	LIBOR(Q)	1.00	%	8.00	%	10.04	%	10/3/2022	$	—	(7,100)		(5,736)		—		K/N
Khoros, LLC (Lithium)	Sr Secured Revolver	LIBOR(Q)	1.00	%	8.00	%	10.04	%	10/3/2022	$	—	(19,127)		(19,255)		—		K/N
Khoros, LLC (Lithium)	First Lien Incremental Term Loan	LIBOR(Q)	1.00	%	8.00	%	10.04	%	10/3/2022	$	7,131,905	7,016,707		7,042,043		0.42	%	N
Khoros, LLC (Lithium)	First Lien Term Loan	LIBOR(Q)	1.00	%	8.00	%	10.04	%	10/3/2022	$	20,884,731	20,616,273		20,621,583		1.22	%	N
NEP II, Inc.	Second Lien Term Loan	LIBOR(M)	—		7.00	%	8.80	%	10/19/2026	$	25,000,000	24,753,355		22,687,500		1.34	%	G
Quora, Inc.	First Lien Term Loan (4.0% Exit Fee)	Fixed	—		10.10	%	10.10	%	5/1/2022	$	12,692,602	12,528,197		12,709,103		0.75	%	L/N
												75,324,526		73,663,359		4.36	%
Metal and Mining
Neenah Foundry Company	First Lien Term Loan B	LIBOR(M)	—		6.50	%	8.35	%	12/13/2022	$	4,943,976	4,909,287		4,845,097		0.29	%

Oil, Gas and Consumable Fuels
Iracore International, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	9.00	%	10.88	%	4/13/2021	$	1,635,903	1,635,902		1,635,903		0.10	%	B/N

Pharmaceuticals
Cambrex Corporation	Second Lien Term Loan	LIBOR(M)	1.00	%	9.00	%	10.70	%	12/6/2027	$	15,441,176	15,133,798		15,363,971		0.91	%	N
P&L Development, LLC	First Lien Term Loan	LIBOR(Q)	2.00	%	7.50	%	9.50	%	6/28/2024	$	8,645,000	8,447,637		8,601,775		0.51	%	G/N
												23,581,435		23,965,746		1.42	%
Professional Services
Applause App Quality, Inc.	First Lien Term Loan	LIBOR(Q)	1.00	%	5.00	%	6.93	%	9/20/2022	$	20,772,306	20,522,294		20,851,241		1.23	%	N
Applause App Quality, Inc.	Sr Secured Revolver	LIBOR(Q)	1.00	%	5.00	%	6.93	%	9/20/2022	$	—	(16,489)		—		—		K/N
CIBT Solutions, Inc.	Second Lien Term Loan	LIBOR(Q)	1.00	%	7.75	%	9.69	%	6/1/2025	$	7,611,914	7,551,528		7,155,199		0.42	%	G/N
Discoverorg, LLC	Second Lien Term Loan	LIBOR(M)	—		8.50	%	10.19	%	2/1/2027	$	15,000,000	14,795,054		15,075,000		0.89	%	G
Dude Solutions Holdings, Inc.	Sr Secured Revolver	LIBOR(M)	1.00	%	7.00	%	8.80	%	6/13/2025	$	—	(45,365)		(40,404)		—		K/N
Dude Solutions Holdings, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	7.00	%	8.80	%	6/13/2025	$	16,927,201	16,566,086		16,617,434		0.98	%	N
iCIMS, Inc.	Sr Secured Revolver	LIBOR(M)	1.00	%	6.50	%	8.29	%	9/12/2024	$	—	(7,699)		(11,385)		—		K/N
iCIMS, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.50	%	8.29	%	9/12/2024	$	9,482,016	9,315,912		9,262,034		0.55	%	N
Institutional Shareholder Services, Inc.	Second Lien Term Loan	LIBOR(Q)	—		8.50	%	10.44	%	3/5/2026	$	5,820,856	5,658,368		5,588,022		0.33	%	N
STG-Fairway Acquisitions, Inc.(First Advantage)	Second Lien Term Loan	LIBOR(M)	1.00	%	9.25	%	11.05	%	6/30/2023	$	31,000,000	30,701,658		31,000,000		1.83	%	N
												105,041,347		105,497,141		6.23	%
Real Estate Management and Development
Florida East Coast Industries, LLC	First Lien Term Loan B	LIBOR(M)	—		6.75	%	8.51	%	12/13/2021	$	2,321,694	2,289,777		2,310,086		0.14	%	N
Florida East Coast Industries, LLC	First Lien Incremental Lien Term Loan B	LIBOR(M)	—		6.75	%	8.51	%	12/13/2021	$	876,520	869,946		872,138		0.05	%	N
Space Midco, Inc. (Archibus)	First Lien Term Loan	LIBOR(M)	—		6.25	%	8.00	%	12/5/2023	$	4,444,444	4,371,064		4,371,111		0.26	%	N
Space Midco, Inc. (Archibus)	Sr Secured Revolver	LIBOR(M)	—		6.25	%	8.00	%	12/5/2023	$	—	(4,371)		(4,583)		—		K/N
												7,526,416		7,548,752		0.45	%
Road and Rail
GlobalTranz Enterprises LLC	Second Lien Term Loan	LIBOR(M)	1.00	%	8.25	%	10.04	%	5/15/2027	$	19,382,324	19,008,604		18,796,978		1.11	%	N

110

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019


Issuer	Instrument	Ref	Floor		Spread		Total Coupon		Maturity/Expiration	Principal/Shares		Cost		Fair Value		% of Total Cash and Investments		Notes
Debt Investments (continued)
Software
Certify, Inc.	First Lien Delayed Draw Term Loan	LIBOR(M)	1.00%		5.75%		7.55%		2/28/2024	$	1,594,315	$	1,547,623	$	1,537,877	0.09	%	N
Certify, Inc.	First Lien Term Loan	LIBOR(M)	1.00%		5.75%		7.55%		2/28/2024	$	23,383,293	23,292,776		22,969,408		1.36	%	N
Certify, Inc.	Sr Secured Revolver	LIBOR(M)	1.00%		5.75%		7.55%		2/28/2024	$	159,432	143,495		140,619		0.01	%	N
JAMF Holdings, Inc.	First Lien Incremental Term Loan	LIBOR(Q)	1.00%		7.00%		8.91%		11/13/2022	$	3,606,829	3,563,940		3,606,829		0.21	%	N
JAMF Holdings, Inc.	First Lien Term Loan	LIBOR(Q)	1.00%		7.00%		8.91%		11/13/2022	$	14,160,797	13,978,598		14,160,797		0.84	%	N
JAMF Holdings, Inc.	Sr Secured Revolver	LIBOR(M)	1.00%		7.00%		8.80%		11/13/2022	$	—	(14,355)		—		—		K/N
Marketlive, LLC (Kibo)	First Lien Term Loan	LIBOR(Q)	—		8.00%		9.91%		12/18/2020	$	5,076,516	4,988,719		4,989,707		0.29	%	N
Rhode Holdings, Inc. (Kaseya)	First Lien Delayed Draw Term Loan	LIBOR(Q)	1.00%		6.50%		8.60%		5/3/2025	$	224,401	193,557		190,964		0.01	%	N
Rhode Holdings, Inc. (Kaseya)	First Lien Term Loan	LIBOR(Q)	1.00%		5.50% Cash+1.00% PIK		8.72%		5/3/2025	$	14,362,948	14,098,242		14,084,307		0.82	%	N
Rhode Holdings, Inc. (Kaseya)	Sr Secured Revolver	LIBOR(M)	1.00%		6.50%		8.30%		5/3/2025	$	689,257	667,641		665,857		0.04	%	N
Snow Software AB	First Lien Term Loan	LIBOR(Q)	2.00%		6.50%		8.50%		4/17/2024	$	13,081,645	12,846,264		12,860,565		0.76	%	N
Snow Software AB	First Lien Incremental Term Loan	LIBOR(Q)	2.00%		6.50%		8.50%		4/17/2024	$	14,557,807	14,269,367		14,311,780		0.84	%	N
Snow Software AB	Sr Secured Revolver	LIBOR(Q)	2.00%		6.50%		8.50%		4/17/2024	$	1,744,219	1,668,977		1,670,526		0.10	%	N
Winshuttle, LLC	First Lien FILO Term Loan	LIBOR(M)	1.00%		8.42%		10.22%		8/9/2024	$	14,007,952	13,649,539		13,665,177		0.81	%	N
												104,894,383		104,854,413		6.18	%
Specialty Retail
USR Parent, Inc. (Staples)	First Lien FILO Term Loan	LIBOR(M)	1.00	%	8.84	%	10.54	%	9/12/2022	$	6,410,930	6,314,032		6,404,519		0.38	%	N

Technology Hardware, Storage and Peripherals
Pulse Secure, LLC	Sr Secured Revolver	LIBOR(M)	1.00	%	7.00	%	8.71	%	5/1/2022	$	—	(9,446)		(3,893)		—		K/N
Pulse Secure, LLC	First Lien Term Loan	LIBOR(M)	1.00	%	7.00	%	8.71	%	5/1/2022	$	11,142,879	11,057,992		11,110,565		0.66	%	N
TierPoint, LLC	Second Lien Term Loan	LIBOR(M)	1.00	%	7.25	%	9.05	%	5/5/2025	$	2,880,000	2,854,404		2,558,405		0.15	%
												13,902,950		13,665,077		0.81	%
Textiles, Apparel and Luxury Goods
ABG Intermediate Holdings 2, LLC (Authentic Brands)	Second Lien Term Loan	LIBOR(M)	1.00	%	7.75	%	9.55	%	9/29/2025	$	11,967,243	11,888,882		11,987,228		0.71	%
Kenneth Cole Productions, Inc.	First Lien FILO Term Loan	LIBOR(M)	1.00	%	7.75	%	9.50	%	12/28/2023	$	23,528,829	23,383,523		23,507,653		1.39	%	N
PSEB, LLC (Eddie Bauer)	First Lien FILO II Term Loan	PRIME	—		7.25	%	12.00	%	10/12/2023	$	10,793,402	10,549,564		10,793,402		0.64	%	N
PSEB, LLC (Eddie Bauer)	First Lien Term Loan	LIBOR(Q)	1.50	%	8.00	%	9.91	%	10/12/2023	$	39,823,155	38,936,624		39,624,039		2.34	%	N
WH Buyer, LLC (Anne Klein)	First Lien Term Loan	LIBOR(Q)	1.50	%	6.75	%	8.75	%	7/16/2025	$	27,664,640	27,395,096		27,410,125		1.62	%	N
												112,153,689		113,322,447		6.70	%
Thrifts and Mortgage Finance
Greystone Select Holdings, LLC	First Lien Term Loan	LIBOR(Q)	1.00	%	8.00	%	9.93	%	4/17/2024	$	24,826,865	24,672,974		25,571,671		1.51	%	N
Home Partners of America, Inc.	First Lien Delayed Draw Term Loan	LIBOR(M)	1.00	%	6.25	%	8.05	%	10/13/2022	$	—	—		—		—		N
Home Partners of America, Inc.	First Lien Term Loan	LIBOR(M)	1.00	%	6.25	%	8.05	%	10/13/2022	$	2,857,143	2,826,874		2,857,145		0.17	%	N
												27,499,848		28,428,816		1.68	%
Tobacco Related
Juul Labs, Inc.	First Lien Term Loan	LIBOR(M)	1.50	%	7.00	%	8.90	%	8/2/2023	$	26,315,789	26,067,931		26,202,632		1.55	%	N

Total Debt Investments												1,564,445,871		1,535,193,938		90.60	%

Equity Securities
Airlines
Epic Aero, Inc (One Sky)	Common Stock									1,842		855,313		6,333,559		0.38	%	C/N
United N659UA-767, LLC (N659UA)	Trust Beneficial Interests									683		2,165,433		2,300,366		0.14	%	E/F/N
United N661UA-767, LLC (N661UA)	Trust Beneficial Interests									688		2,225,361		2,347,314		0.14	%	E/F/N
												5,246,107		10,981,239		0.66	%

111

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019



Issuer	Instrument	Expiration	Shares	Cost		Fair Value		% of Total Cash and Investments		Notes
Equity Securities (continued)
Chemicals
AGY Holding Corp.	Common Stock		1,333,527	$	—	$	—	—		B/C/E/N
KAGY Holding Company, Inc.	Series A Preferred Stock		9,778	1,091,200		—		—		B/C/E/N
				1,091,200		—		—
Communications Equipment
Avanti Communications Group, PLC (United Kingdom)	Common Stock		26,576,710	4,902,674		3,523		—		C/D/H/N

Diversified Consumer Services
Edmentum Ultimate Holdings, LLC	Class A Common Units		159,515	680,226		1,433,968		0.08	%	B/C/E/N
Edmentum Ultimate Holdings, LLC	Warrants to Purchase Class A Units	2/23/2028	788,112	1		7,084,470		0.42	%	B/C/E/N
				680,227		8,518,438		0.50	%
Diversified Financial Services
36th Street Capital Partners Holdings, LLC	Membership Units		22,199,416	22,199,416		31,682,859		1.87	%	E/F/N/O
Conventional Lending TCP Holdings, LLC	Membership Units		14,269,948	14,269,948		14,269,948		0.84	%	E/F/I/N
GACP I, LP (Great American Capital)	Membership Units		1,772,812	1,772,812		2,384,330		0.14	%	E/I/N
GACP II, LP (Great American Capital)	Membership Units		18,039,482	18,039,482		18,764,975		1.11	%	E/I/N
				56,281,658		67,102,112		3.96	%
Diversified Telecommunication Services
V Telecom Investment S.C.A. (Vivacom) (Luxembourg)	Common Shares		1,393	3,236,256		95,280		0.01	%	C/D/E/H/N

Electric Utilities
Conergy Asia Holdings Limited (United Kingdom)	Class B Shares		1,000,000	1,000,000		—		—		C/E/F/H/N
Conergy Asia Holdings Limited (United Kingdom)	Ordinary Shares		3,333	7,833,333		—		—		C/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Ordinary Shares		2,332,594	—		—		—		C/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands)	Series B Preferred Shares		93,023	1,395,349		—		—		C/E/F/H/N
Utilidata, Inc.	Warrants to Purchase Preferred Stock	12/22/2022	719,998	216,336		29,070		—		C/E/N
				10,445,018		29,070		—
Electronic Equipment, Instruments and Components
Soraa, Inc.	Warrants to Purchase Preferred Stock	8/29/2024	3,071,860	478,899		—		—		C/E/N

Energy Equipment and Services
GlassPoint Solar, Inc.	Warrants to Purchase Series E Preferred Stock	2/7/2027	400,000	248,555		113,280		0.01	%	C/E/N
GlassPoint Solar, Inc.	Warrants to Purchase Series E Preferred Stock	2/7/2027	2,048,000	505,450		579,992		0.03	%	C/E/N
				754,005		693,272		0.04	%

112

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019


Issuer	Instrument	Expiration	Shares	Cost		Fair Value		% of Total Cash and Investments		Notes
Equity Securities (continued)
Internet Software and Services
Domo, Inc.	Warrants to Purchase Class B Common Stock	6/28/2021	62,247	$	511,349	$	509,086	0.03	%	C/E/N
FinancialForce.com, Inc.	Warrants to Purchase Series C Preferred Stock	1/30/2029	840,000	287,985		271,044		0.02	%	C/E/N
Foursquare Labs, Inc.	Warrants to Purchase Series E Preferred Stock	5/4/2027	1,687,500	297,361		347,063		0.02	%	C/E/N
InMobi, Inc. (Singapore)	Warrants to Purchase Common Stock	8/15/2027	1,327,869	212,360		180,797		0.01	%	C/E/H/N
InMobi, Inc. (Singapore)	Warrants to Purchase Series E Preferred Stock (Strike Price $20.01)	9/18/2025	1,049,996	276,492		396,397		0.02	%	C/E/H/N
InMobi, Inc. (Singapore)	Warrants to Purchase Series E Preferred Stock (Strike Price $28.58)	10/3/2028	1,511,002	93,407		335,614		0.02	%	C/E/H/N
ResearchGate Corporation (Germany)	Warrants to Purchase Series D Preferred Stock	10/30/2029	333,370	202,001		205,018		0.01	%	C/D/E/H/N
Snaplogic, Inc.	Warrants to Purchase Series Preferred Stock	3/19/2028	1,860,000	377,722		4,600,000		0.27	%	C/E/N
				2,258,677		6,845,019		0.40	%
IT Services
Fidelis (SVC), LLC	Preferred Units		657,932	2,001,384		47,518		—		C/E/N

Life Sciences Tools and Services
Envigo RMS Holdings Corp.	Common Stock		36,413	—		526,350		0.03	%	C/E/N

Media
NEG Parent, LLC (Core Entertainment, Inc.)	Class A Units		2,720,392	2,772,807		6,925,847		0.41	%	B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.)	Class A Warrants to Purchase Class A Units	10/17/2026	343,387	196,086		391,407		0.02	%	B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.)	Class B Warrants to Purchase Class A Units	10/17/2026	346,794	198,032		395,290		0.02	%	B/C/E/N
Quora, Inc.	Warrants to Purchase Series D Preferred Stock	4/11/2029	507,704	65,245		64,803		—		C/E/N
Shop Holding, LLC (Connexity)	Class A Units		507,167	480,049		—		—		C/E/N
SoundCloud, Ltd. (United Kingdom)	Warrants to Purchase Preferred Stock	4/29/2025	946,498	79,082		45,143		—		C/E/H/N
				3,791,301		7,822,490		0.45	%
Oil, Gas and Consumable Fuels
Iracore Investments Holdings, Inc.	Class A Common Stock		16,207	4,177,710		2,476,881		0.15	%	B/C/E/N

Professional Services
Anacomp, Inc.	Class A Common Stock		1,255,527	26,711,048		1,167,641		0.07	%	C/E/F/N
Findly Talent, LLC	Membership Units		708,229	230,938		123,939		0.01	%	C/E/N
STG-Fairway Holdings, LLC (First Advantage)	Class A Units		803,961	325,432		5,380,520		0.32	%	C/E/N
				27,267,418		6,672,100		0.40	%
Semiconductors and Semiconductor Equipment
Adesto Technologies Corporation	Warrants to Purchase Common Stock	5/8/2024	436,320	846,724		667,570		0.04	%	C/E/N
Nanosys, Inc.	Warrants to Purchase Preferred Stock	3/29/2023	800,000	605,266		838,607		0.05	%	C/E/N
				1,451,990		1,506,177		0.09	%

113

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2019


Issuer	Instrument	Expiration	Shares	Cost		Fair Value		% of Total Cash and Investments		Notes
Equity Securities (continued)
Software
Actifio, Inc.	Warrants to Purchase Series G Preferred Stock	5/5/2027	1,052,651	$	188,770	$	469,687	0.03	%	C/E/N
Tradeshift, Inc.	Warrants to Purchase Series D Preferred Stock	3/26/2027	1,712,930	577,842		523,801		0.03	%	C/E/N
				766,612		993,488		0.06	%

Total Equity Securities - 14.7% of Net Assets				124,831,136		114,312,957		6.75	%

Total Investments - 212.5% of Net Assets				$	1,689,277,077	$	1,649,506,895

Cash and Cash Equivalents
Cash Held on Account at Various Institutions						44,848,539		2.65	%
Cash and Cash Equivalents						44,848,539		2.65	%

Total Cash and Investments - 218.3% of Net Assets						$	1,694,355,434	100.00	%	M

Notes to Consolidated Schedule of Investments:

(C)Non-income producing.

(D)Investment denominated in foreign currency. Cost and fair value converted from foreign currency to US dollars. Foreign currency denominated investments are generally hedged for currency exposure.

(E)Restricted security. (See Note 2)

(G)Investment has been segregated to collateralize certain unfunded commitments.

(K)Negative balances relate to an unfunded commitment that was acquired and/or valued at a discount.

(L)In addition to the stated coupon, investment has an exit fee payable upon repayment of the loan in an amount equal to the percentage of the original principal amount shown.

(M)All cash and investments, except those referenced in Notes G above, are pledged as collateral under certain debt as described in Note 4 to the Consolidated Financial Statements.

(N)Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole.

(O)36th Street Capital Partners Holdings, LLC holds common and preferred interests in a pool of equipment loans and leases made by 36th Street Capital Partners, LLC.

LIBOR or EURIBOR resets monthly (M), quarterly (Q), semiannually (S), or annually (A).

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $700,024,114 and $596,374,086, respectively, for the twelve months ended December 31, 2019. Aggregate acquisitions includes investment assets received as payment in kind. Aggregate dispositions includes principal paydowns on and maturities of debt investments. The total value of restricted securities and bank debt as of December 31, 2019 was $1,605,565,013 or 94.8% of total cash and investments of the Company. As of December 31, 2019, approximately 9.3% of the total assets of the Company were not qualifying assets under Section 55(a) of the 1940 Act.

See accompanying notes to the consolidated financial statements.

114

BlackRock TCP Capital Corp.

Consolidated Statements of Operations


	Year Ended December 31,
	2020		2019		2018
Investment income
Interest income (excluding PIK):
Companies less than 5% owned	$	141,433,940	$	170,292,622	$	168,673,628
Companies 5% to 25% owned	2,533,862		2,750,461		2,713,602
Companies more than 25% owned	6,378,826		5,034,138		3,645,312
PIK income:
Companies less than 5% owned	7,554,503		10,108,553		9,128,512
Companies 5% to 25% owned	3,757,086		3,398,235		4,337,080
Companies more than 25% owned	—		—		649,680
Dividend income:

Companies more than 25% owned	2,473,865		2,392,274		750,714
Lease income:
Companies more than 25% owned	38,136		297,827		297,827
Other income:
Companies less than 5% owned	4,660,979		891,805		5,473
Companies 5% to 25% owned	3,272,529		—		297,356

Total investment income	172,103,726		195,165,915		190,499,184

Operating expenses
Interest and other debt expenses	41,237,035		46,398,795		40,468,761



Management and advisory fees	23,806,418		24,860,910		24,179,376
Incentive fee	15,314,201		20,307,759		23,346,164
Administrative expenses	2,159,788		2,338,624		2,393,582
Legal fees, professional fees and due diligence expenses	1,841,097		1,756,480		2,307,196
Director fees	857,789		781,933		794,278
Insurance expense	700,321		591,728		468,184
Custody fees	413,533		410,852		377,611
Other operating expenses	2,551,562		2,860,741		2,686,677
Total operating expenses	88,881,744		100,307,822		97,021,829

Net investment income before taxes	83,221,982		94,858,093		93,477,355

Excise tax expense	—		—		92,700
Net investment income	83,221,982		94,858,093		93,384,655

Realized and unrealized gain (loss)
Net realized gain (loss):
Investments in companies less than 5% owned	618,133		(56,955,163)		856,650
Investments in companies 5% to 25% owned	(6,260,913)		(19,671,886)		(29,704,298)
Investments in companies more than 25% owned	129,950		—		—
Net realized loss	(5,512,830)		(76,627,049)		(28,847,648)

Change in net unrealized appreciation/depreciation	(3,897,751)		12,349,745		(19,061,125)
Net realized and unrealized loss	(9,410,581)		(64,277,304)		(47,908,773)

Realized loss on extinguishment of debt	(2,436,913)		—		—

Net increase in net assets from operations	$	71,374,488	$	30,580,789	$	45,475,882

Basic and diluted earnings per share	$	1.23	$	0.52	$	0.77

Basic and diluted weighted average common shares outstanding	57,991,233		58,766,362		58,815,216

See accompanying notes to the consolidated financial statements.

115

BlackRock TCP Capital Corp.

Consolidated Statements of Changes in Net Assets


	Common Stock			Paid in Capital in Excess of Par		Distributable earnings (loss)		Total Net Assets
	Shares	Par Amount
Balance at December 31, 2017	58,847,256	$	58,847	$	1,038,855,948	$	(168,186,669)	$	870,728,126

Issuance of common stock from dividend reinvestment plan	767	—		10,693		—		10,693
Repurchase of common stock	(73,416)	(72)		(1,046,403)		—		(1,046,475)
Net investment income	—	—		—		93,384,655		93,384,655
Net realized and unrealized loss	—	—		—		(47,908,773)		(47,908,773)
Dividends paid to common shareholders	—	—		—		(84,693,499)		(84,693,499)
Tax reclassification of shareholders' equity in accordance with generally accepted accounting principles	—	—		(37,747,055)		37,747,055		—
Balance at December 31, 2018	58,774,607	$	58,775	$	1,000,073,183	$	(169,657,231)	$	830,474,727

Issuance of common stock from dividend reinvestment plan	819	—		11,453		—		11,453
Repurchase of common stock	(9,000)	(9)		(125,670)		—		(125,679)
Net investment income	—	—		—		94,858,093		94,858,093
Net realized and unrealized loss	—	—		—		(64,277,304)		(64,277,304)
Dividends paid to common shareholders	—	—		—		(84,622,904)		(84,622,904)
Tax reclassification of shareholders' equity in accordance with generally accepted accounting principles	—	—		(2,579,604)		2,579,604		—
Balance at December 31, 2019	58,766,426	$	58,766	$	997,379,362	$	(221,119,742)	$	776,318,386

Issuance of common stock from dividend reinvestment plan	838	1		6,252		—		6,253
Repurchase of common stock	(1,000,000)	(1,000)		(6,099,190)		—		(6,100,190)
Net investment income	—	—		—		83,221,982		83,221,982
Net realized and unrealized loss	—	—		—		(9,410,581)		(9,410,581)
Dividends paid to common shareholders	—	—		—		(76,612,359)		(76,612,359)
Loss on extinguishment of debt						(2,436,913)		(2,436,913)
Tax reclassification of shareholders' equity in accordance with generally accepted accounting principles	—	—		(11,313,222)		11,313,222		—
Balance at December 31, 2020	57,767,264	$	57,767	$	979,973,202	$	(215,044,391)	$	764,986,578

See accompanying notes to the consolidated financial statements.

116

BlackRock TCP Capital Corp.

Consolidated Statements of Cash Flows


	Year Ended December 31,
	2020		2019		2018
Operating activities
Net increase in net assets resulting from operations	$	71,374,488	$	30,580,789	$	45,475,882
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized loss	5,512,830		76,627,049		28,847,648
Realized loss on extinguishment of debt	2,436,913		—		—
Change in net unrealized appreciation/depreciation of investments	3,432,807		(12,492,073)		19,034,390
Net amortization of investment discounts and premiums	(9,572,245)		(12,706,060)		(10,032,111)
Amortization of original issue discount on debt	1,228,151		1,355,080		1,183,036
Interest and dividend income paid in kind	(11,311,589)		(13,785,524)		(14,115,272)
Amortization of deferred debt issuance costs	3,504,578		3,640,812		3,856,735
Changes in assets and liabilities:
Purchases of investment securities	(448,841,511)		(686,238,590)		(619,887,200)
Proceeds from sales, maturities and pay downs of investments	480,719,625		596,374,086		512,795,715
Decrease (increase) in accrued interest income - companies less than 5% owned	1,379,670		3,961,499		(2,365,743)
Decrease in accrued interest income - companies 5% to 25% owned	664,797		12,892		139,927
Decrease (increase) in accrued interest income - companies more than 25% owned	292,110		(181,712)		(107,150)
Decrease (increase) in receivable for investments sold	1,037,930		(1,316,667)		431,483
Decrease (increase) in prepaid expenses and other assets	1,431,168		4,772,120		(2,596,439)
Increase (decrease) in payable for investments purchased	20,217,902		12,148,687		(15,565,873)
Increase (decrease) in incentive compensation payable	267,123		(1,086,675)		(142,789)
Increase (decrease) in interest payable	(951,036)		2,089,249		976,335
Increase (decrease) in payable to the Advisor	(246,895)		365,279		425,669
Increase in management and advisory fees payable	324,272		181,731		5,247,344
Increase (decrease) in accrued expenses and other liabilities	(575,411)		391,382		27,868
Net cash provided by (used in) operating activities	122,325,677		4,693,354		(46,370,545)

Financing activities
Draws on credit facilities	504,025,619		724,497,620		476,953,697
Repayments of credit facility draws	(613,991,654)		(712,000,000)		(399,953,697)
Payments of debt issuance costs	(4,120,805)		(5,178,707)		(3,605,009)
Dividends paid to common shareholders	(76,612,359)		(84,622,904)		(84,693,499)
Repurchase of common shares	(6,100,190)		(125,679)		(1,046,475)
Repayment of convertible notes	—		(108,000,000)		—
Proceeds from issuance of unsecured notes	49,625,500		197,653,000		—
Proceeds from shares issued in connection with dividend reinvestment plan	6,253		11,453		10,693

Net cash provided by (used in) financing activities	(147,167,636)		12,234,783		(12,334,290)

Net increase (decrease) in cash and cash equivalents (including restricted cash)	(24,841,959)		16,928,137		(58,704,835)
Cash and cash equivalents (including restricted cash) at beginning of year	44,848,539		27,920,402		86,625,237
Cash and cash equivalents (including restricted cash) at end of year	$	20,006,580	$	44,848,539	$	27,920,402

Supplemental cash flow information
Interest payments	$	36,211,671	$	38,216,149	$	33,454,234
Excise tax payments	$	—	$	—	$	86,106

See accompanying notes to the consolidated financial statements.

117

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements

December 31, 2020

1. Organization and Nature of Operations

BlackRock TCP Capital Corp. (the “Company”), formerly known as TCP Capital Corp., is a Delaware corporation formed on April 2, 2012 as an externally managed, closed-end, non-diversified management investment company. The Company elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. The Company invests primarily in the debt of middle-market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Such investments may include an equity component, and, to a lesser extent, the Company may make equity investments directly. The Company was formed through the conversion on April 2, 2012 of the Company’s predecessor, Special Value Continuation Fund, LLC, from a limited liability company to a corporation in a non-taxable transaction, leaving the Company as the surviving entity. On April 3, 2012, the Company completed its initial public offering.

Investment operations are conducted through the Company's wholly-owned subsidiaries, Special Value Continuation Partners LLC, a Delaware limited liability company ("SVCP"), TCPC Funding I, LLC, a Delaware limited liability company (“TCPC Funding”), TCPC Funding II, LLC, a Delaware limited liability company ("TCPC Funding II") and TCPC SBIC, LP, a Delaware limited partnership (the “SBIC”). SVCP was organized as a limited partnership and had elected to be regulated as a BDC under the 1940 Act through July 31, 2018. On August 1, 2018, SVCP withdrew its election to be regulated as a BDC under the 1940 Act and withdrew the registration of its common limited partner interests under Section 12(g) of the Securities Exchange Act of 1934 and, on August 2, 2018, terminated its general partner, Series H of SVOF/MM, LLC, and converted to a Delaware limited liability company. The SBIC was organized in June 2013, and, on April 22, 2014, received a license from the United States Small Business Administration (the “SBA”) to operate as a small business investment company under the provisions of Section 301(c) of the Small Business Investment Act of 1958. These consolidated financial statements include the accounts of the Company, SVCP, TCPC Funding, TCPC Funding II and the SBIC. All significant intercompany transactions and balances have been eliminated in the consolidation.

The Company has elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes. As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements. TCPC Funding, TCPC Funding II and the SBIC have elected to be treated as partnerships for U.S. federal income tax purposes. SVCP was treated as a partnership for U.S. federal income tax purposes through August 1, 2018 and upon its conversion to a limited liability company on August 2, 2018 and thereafter is and will be treated as a disregarded entity.

Series H of SVOF/MM, LLC serves as the administrator of the Company (the “Administrator”). The managing member of SVOF/MM is Tennenbaum Capital Partners, LLC (the “Advisor”), which serves as the investment manager to the Company, TCPC Funding, TCPC Funding II and the SBIC. On August 1, 2018, the Advisor merged with and into a wholly owned subsidiary of BlackRock Capital Investment Advisors, LLC, an indirect wholly owned subsidiary of BlackRock, Inc., with the Advisor as the surviving entity.

Company management consists of the Advisor and the Company’s board of directors. The Advisor directs and executes the day-to-day operations of the Company, subject to oversight from the board of directors, which sets the broad policies of the Company. The board of directors of the Company has delegated investment management of SVCP’s assets to the Advisor. The board of directors consists of eight persons, six of whom are independent.

118

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. The Company has consolidated the results of its wholly owned subsidiaries in its consolidated financial statements in accordance with ASC Topic 946. The following is a summary of the significant accounting policies of the Company.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well the reported amounts of revenues and expenses during the reporting periods presented. Although management believes these estimates and assumptions to be reasonable, actual results could differ from those estimates and such differences could be material.

Investment Valuation

The Company’s investments are generally held by SVCP, TCPC Funding I, TCPC Funding II or the SBIC. Management values investments at fair value in accordance with GAAP, based upon the principles and methods of valuation set forth in policies adopted by the board of directors. Fair value is generally defined as the amount for which an investment would be sold in an orderly transaction between market participants at the measurement date.

All investments are valued at least quarterly based on quotations or other affirmative pricing from independent third-party sources, with the exception of investments priced directly by the Advisor which in the aggregate comprise less than 5% of the capitalization of the Company. Investments listed on a recognized exchange or market quotation system, whether U.S. or foreign, are valued using the closing price on the date of valuation.

Investments not listed on a recognized exchange or market quotation system, but for which reliable market quotations are readily available are valued using prices provided by a nationally recognized pricing service or by using quotations from broker-dealers.

Investments for which market quotations are either not readily available or are determined to be unreliable are priced at fair value using affirmative valuations performed by independent valuation services approved by the board of directors or, for investments aggregating less than 5% of the total capitalization of the Company, using valuations determined directly by the Advisor. Such valuations are determined under a documented valuation policy that has been reviewed and approved by the board of directors.

Generally, to increase objectivity in valuing the investments, the Advisor will utilize external measures of value, such as public markets or third-party transactions, whenever possible. The Advisor’s valuation is not based on long-term work-out value, immediate liquidation value, nor incremental value for potential changes that may take place in the future. The values assigned to investments are based on available information and do not necessarily represent amounts that might ultimately be realized, as these amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated. Such circumstances may include macroeconomic, geopolitical and other events and conditions such as the current COVID-19 pandemic that may significantly impact the profitability or viability of businesses in which the Company is invested, and therefore may significantly impact the return on and realizability of the Company’s investments. The foregoing policies apply to all

119

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

investments, including any in companies and groups of affiliated companies aggregating more than 5% of the Company’s assets.

Fair valuations of investments in each asset class are determined using one or more methodologies including market quotations, the market approach, income approach, or, in the case of recent investments, the cost approach, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Such information may include observed multiples of earnings and/or revenues at which transactions in securities of comparable companies occur, with appropriate adjustments for differences in company size, operations or other factors affecting comparability.

The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present value amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. The discount rates used for such analyses reflect market yields for comparable investments, considering such factors as relative credit quality, capital structure, and other factors.

In following these approaches, the types of factors that may be taken into account also include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparables, comparable costs of capital, the principal market in which the investment trades and enterprise values, among other factors.

Investments may be categorized based on the types of inputs used in valuing such investments. The level in the GAAP valuation hierarchy in which an investment falls is based on the lowest level input that is significant to the valuation of the investment in its entirety. Transfers between levels are recognized as of the beginning of the reporting period.

At December 31, 2020, the Company’s investments were categorized as follows:


Level	Basis for Determining Fair Value	Bank Debt		Other Corporate Debt		Equity Securities
1	Quoted prices in active markets for identical assets	$	—	$	—	$	3,175,236
2	Other direct and indirect observable market inputs *	67,243,763		—		—
3	Independent third-party valuation sources that employ significant unobservable inputs	1,281,636,688		95,923,481		179,525,253
3	Advisor valuations with significant unobservable inputs	—		—		2,060,061
Total		$	1,348,880,451	$	95,923,481	$	184,760,550

______________

* For example, quoted prices in inactive markets or quotes for comparable investments

120

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

Unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2020 included the following:

Asset Type

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Avg.) †

Bank Debt

1,128,076,031

Income approach

Discount rate

5.2% - 18.0% (9.3%)

104,635,137

Market quotations

Indicative bid/ask quotes

1 (1)

32,822,501

Market comparable companies

Revenue multiples

1.4x - 4.5x (3.1x)

16,103,019

Market comparable companies

EBITDA multiples

6.0x - 6.9x (6.8x)

Other Corporate Debt

53,957,531

Income approach

Discount rate

7.1% - 18.0% (10.3%)

40,834,419

Market comparable companies

Book value multiples

1.5x (1.5x)

1,131,531

Market comparable companies

Revenue multiples

4.3x (4.3x)

Equity

8,117,073

Income approach

Discount rate

9.5% - 18.0% (9.5%)

72,336,690

Market quotations

Indicative bid/ask quotes

1 (1)

14,332,807

Option Pricing Model

EBITDA/Revenue multiples

6.4x (6.4x)

Implied volatility

35.0% - 70.0% (49.5%)

Term

1.5 years - 3.5 years (2.3 years)

1,316,936

Market comparable companies

Revenue multiples

0.7x - 4.3x (1.0x)

33,010,028

Market comparable companies

EBITDA multiples

6.0x - 9.8x (7.0x)

33,135,000

Market comparable companies

Book value multiples

1.5x (1.5x)

19,336,780

Other *

N/A

1,559,145,483

______________

* Fair value was determined based on the most recently available net asset value of the issuer adjusted for identified changes in the valuations of the underlying portfolio of the issuer through the measurement date.

† Weighted by fair value

Certain fair value measurements may employ more than one valuation technique, with each valuation technique receiving a relative weight between 0% and 100%. Generally, a change in an unobservable input may result in a change to the value of an investment as follows:

Input

Impact to Value if
Input Increases

Impact to Value if
Input Decreases

Discount rate

Decrease

Increase

Revenue multiples

Increase

Decrease

EBITDA multiples

Increase

Decrease

Book value multiples

Increase

Decrease

Implied volatility

Increase

Decrease

Term

Increase

Decrease

Yield

Increase

Decrease

121

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the years ended December 31, 2020 were as follows:


	Independent Third-Party Valuation
	Bank Debt		Other Corporate Debt		Equity Securities
Beginning balance	$	1,312,492,099	$	85,962,603	$	111,994,829
Net realized and unrealized gains (losses)	(25,686,688)		(9,495,018)		20,750,174
Acquisitions *	366,816,234		19,455,896		73,824,026
Dispositions	(427,508,565)		—		(26,050,288)
Transfers into Level 3 †	71,280,582		—		—
Transfers out of Level 3 ‡	(15,756,974)		—		—
Reclassifications within Level 3 §	—		—		(993,488)
Ending balance	$	1,281,636,688	$	95,923,481	$	179,525,253

Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)	$	(18,564,796)	$	(5,786,591)	$	19,202,657

______________

* Includes payments received in kind and accretion of original issue and market discounts

† Comprised of four investments that were transferred from Level 2 due to reduced trading volumes

‡ Comprised of two investments that were transferred to Level 2 due to increased observable market activity

§ Comprised of two investments that were reclassified to Advisor Valuation


	Advisor Valuation
	Bank Debt		Other Corporate Debt		Equity Securities
Beginning balance	$	—	$	—	$	2,318,128
Net realized and unrealized gains (losses)	—		—		248,262

Dispositions	—		—		(1,499,817)
Reclassifications within Level 3 *	—		—		993,488
Ending balance	$	—	$	—	$	2,060,061

Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)	$	—	$	—	$	(1,032,336)

______________

* Comprised of two investments that were reclassified from Independent Third-Party Valuation

122

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

At December 31, 2019, the Company’s investments were categorized as follows:


Level	Basis for Determining Fair Value	Bank Debt		Other Corporate Debt		Equity Securities
1	Quoted prices in active markets for identical assets	$	—	$	—	$	—
2	Other direct and indirect observable market inputs *	136,739,236		—		—
3	Independent third-party valuation sources that employ significant unobservable inputs	1,312,492,099		85,962,603		111,994,829
3	Advisor valuations with significant unobservable inputs	—		—		2,318,128
Total		$	1,449,231,335	$	85,962,603	$	114,312,957

______________

* For example, quoted prices in inactive markets or quotes for comparable investments

Unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2019 included the following:

Asset Type

Fair Value

Valuation Technique

Unobservable Input

Range (Weighted Avg.) †

Bank Debt

1,147,288,529

Income approach

Discount rate

6.7% - 46.3% (9.9%)

96,585,498

Market quotations

Indicative bid/ask quotes

1 (1)

24,268,604

Market comparable companies

Revenue multiples

3.6x - 4.4x (3.6x)

44,349,468

Market comparable companies

EBITDA multiples

6.5x - 14.3x (10.8x)

Other Corporate Debt

37,604,800

Income approach

Discount rate

12.3% (12.3%)

40,834,419

Market comparable companies

Book value multiples

1.3x (1.3x)

3,814,956

Market comparable companies

Revenue multiples

4.4x (4.4x)

3,708,428

Market comparable companies

EBITDA multiples

8.0x (8.0x)

Equity

4,647,680

Income approach

Discount rate

3.6% - 3.7% (3.7%)

14,412,746

Market quotations

Indicative bid/ask quotes

1 (1)

18,048,138

Option Pricing Model

EBITDA/Revenue multiples

1.2x - 27.2x (8.3x)

Implied volatility

30.0% - 200.0% (27.4%)

Yield

0.0% (0.0%)

Term

0.5 years - 3.5 years (1.4 years)

2,012,088

Market comparable companies

Revenue multiples

0.3x - 4.4x (2.0x)

22,360,141

Market comparable companies

EBITDA multiples

2.5x - 14.3x (9.1x)

31,682,859

Market comparable companies

Book value multiples

1.3x (1.3x)

21,149,305

Other *

N/A

1,512,767,659

______________

† Weighted by fair value

123

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the year ended December 31, 2019 were as follows:


	Independent Third-Party Valuation
	Bank Debt		Other Corporate Debt		Equity Securities
Beginning balance	$	1,369,456,684	$	78,250,150	$	79,804,988
Net realized and unrealized gains (losses)	(53,280,257)		(7,866,887)		19,690,320
Acquisitions *	630,057,206		14,851,582		32,966,579
Dispositions	(521,431,948)		(28,270,875)		(15,422,094)
Transfers into Level 3 †	—		28,998,633		847,399
Transfer out of Level 3 ‡	(112,309,586)		—		—
Reclassifications within Level 3 §	—		—		(5,892,363)
Ending balance	$	1,312,492,099	$	85,962,603	$	111,994,829

Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)	$	(375,382)	$	(6,320,449)	$	21,418,900

______________

* Includes payments received in kind and accretion of original issue and market discounts

† Comprised of one investment that was transferred from Level 2 and one investment that was transferred from Level 1 due to reduced trading volumes

‡ Comprised of seven investments that were transferred to Level 2 due to increased observable market activity

§ Comprised of four investments that were reclassified to Advisor Valuation


	Advisor Valuation
	Bank Debt		Other Corporate Debt		Equity Securities
Beginning balance	$	—	$	—	$	1,524,143
Net realized and unrealized gains (losses)	—		—		(9,058,215)
Acquisitions	—		—		4,007,684
Dispositions	—		—		(47,847)
Reclassifications within Level 3 *	—		—		5,892,363
Ending balance	$	—	$	—	$	2,318,128

Net change in unrealized appreciation/depreciation during the period on investments still held at period end (included in net realized and unrealized gains/losses, above)	$	—	$	—	$	(3,402,422)

______________

* Comprised of four investments that were reclassified from Independent Third-Party Valuation

124

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

Investment Transactions

Investment transactions are recorded on the trade date, except for private transactions that have conditions to closing, which are recorded on the closing date. The cost of investments purchased is based upon the purchase price plus those professional fees which are specifically identifiable to the investment transaction. Realized gains and losses on investments are recorded based on the specific identification method, which typically allocates the highest cost inventory to the basis of investments sold.

Cash and Cash Equivalents

Cash consists of amounts held in accounts with brokerage firms and the custodian bank. Cash equivalents consist of highly liquid investments with an original maturity of generally three months or less. Cash equivalents are carried at amortized cost which approximates fair value. Cash equivalents are classified as Level 1 in the GAAP valuation hierarchy. There was no restricted cash at December 31, 2020 or December 31, 2019.

Restricted Investments

The Company may invest without limitation in instruments that are subject to legal or contractual restrictions on resale. These instruments generally may be resold to institutional investors in transactions exempt from registration or to the public if the securities are registered. Disposal of these investments may involve time-consuming negotiations and additional expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted investments is included at the end of the Consolidated Schedule of Investments. Restricted investments, including any restricted investments in affiliates, are valued in accordance with the investment valuation policies discussed above.

Foreign Investments

The Company may invest in instruments traded in foreign countries and denominated in foreign currencies. Foreign currency denominated investments comprised approximately 0.6% and 0.5% of total investments at December 31, 2020 and December 31, 2019, respectively. Such positions were converted at the respective closing foreign exchange rates in effect at December 31, 2020 and December 31, 2019 and reported in U.S. dollars. Purchases and sales of investments and income and expense items denominated in foreign currencies, when they occur, are translated into U.S. dollars based on the foreign exchange rates in effect on the respective dates of such transactions. The portion of gains and losses on foreign investments resulting from fluctuations in foreign currencies is included in net realized and unrealized gain or loss from investments.

Investments in foreign companies and securities of foreign governments may involve special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include, among other things, revaluation of currencies, less reliable information about issuers, different transaction clearance and settlement practices, and potential future adverse political and economic developments. Moreover, investments in foreign companies and securities of foreign governments and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies and the U.S. government.

Derivatives

In order to mitigate certain currency exchange and interest rate risks, the Company may enter into certain derivative transactions. All derivatives are subject to a master netting agreement and are reported at their gross amounts as either assets or liabilities in the Consolidated Statements of Assets and Liabilities. Transactions entered into are accounted for using the mark-to-market method with the resulting change in fair value recognized in earnings for the

125

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

current period. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in interest rates and the value of foreign currencies relative to the U.S. dollar. Certain derivatives may also require the Company to pledge assets as collateral to secure its obligations.

During the years ended December 31, 2020 and December 31, 2019, the Company did not enter into any derivative transactions nor hold any derivative positions.

Valuations of derivatives are determined using observable market inputs other than quoted prices in active markets for identical assets and, accordingly, are classified as Level 2 in the GAAP valuation hierarchy.

Deferred Debt Issuance Costs

Certain costs incurred in connection with the issuance and/or extension of debt of the Company and its subsidiaries were capitalized and are being amortized on a straight-line basis over the estimated life of the respective instruments. The impact of utilizing the straight-line amortization method versus the effective-interest method is not material to the operations of the Company.

Revenue Recognition

Certain debt investments are purchased at a discount to par as a result of the underlying credit risks and financial results of the issuer, as well as general market factors that influence the financial markets as a whole. Discounts on the acquisition of corporate bonds are generally amortized using the effective-interest or constant-yield method assuming there are no questions as to collectability. When principal payments on a loan are received in an amount in excess of the loan’s amortized cost, the excess principal payments are recorded as interest income.

Income Taxes

The Company intends to comply with the applicable provisions of the Internal Revenue Code of 1986, as amended, pertaining to regulated investment companies and to make distributions of taxable income sufficient to relieve it from substantially all federal income taxes. Accordingly, no provision for income taxes is required in the consolidated financial statements. The income or loss of the Operating Company, TCPC Funding I, TCPC Funding II and the SBIC is reported in the respective members' or partners’ income tax returns, as applicable. In accordance with ASC Topic 740 - Income Taxes, the Company recognizes in its consolidated financial statements the effect of a tax position when it is determined that such position is more likely than not, based on the technical merits, to be sustained upon examination. The tax returns of the Company, the Operating Company, TCPC Funding I, TCPC Funding II and the SBIC remain open for examination by tax authorities for a period of three years from the date they are filed. No such examinations are currently pending.

GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of

126

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

December 31, 2020 and December 31, 2019, the following permanent differences, primarily attributable to the application of certain income amounts against our capital loss carryforwards, were reclassified as follows:


	December 31, 2020		December 31, 2019
Paid-in capital	$	(11,313,222)	$	(2,579,604)
Accumulated earnings	11,313,222		2,579,604

The tax character of distributions paid was as follows:


	December 31, 2020		December 31, 2019
Ordinary income	$	65,299,137	$	82,136,286
Tax return of capital	11,313,222		2,486,618
	$	76,612,359	$	84,622,904

The tax-basis components of distributable earnings (accumulated deficit) applicable to the common shareholders of the Company at December 31, 2020, December 31, 2019 and December 31, 2018 were as follows:


	December 31, 2020		December 31, 2019		December 31, 2018
Undistributed ordinary income	$	—	$	—	$	1,496,914
Non-expiring capital loss carryforwards *	(171,300,137)		(177,144,745)		(127,718,766)
Net unrealized gains (losses) †	(43,744,254)		(43,974,997)		(43,435,379)
Total accumulated earnings (losses)	$	(215,044,391)	$	(221,119,742)	$	(169,657,231)

______________

* Amount available to offset future realized capital gains.

† The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the timing and recognition of gains and losses on certain investment transactions and will reverse in subsequent periods.

During the year ended December 31, 2020, the Company utilized $5,844,608 of its capital loss carryforward.

As of December 31, 2020 and December 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:


	December 31, 2020		December 31, 2019
Tax basis of investments	$	1,671,848,321	$	1,692,429,288

Unrealized appreciation	$	76,459,937	$	54,380,159
Unrealized depreciation	(118,743,776)		(97,302,552)
Net unrealized depreciation	$	(42,283,839)	$	(42,922,393)

Recent Accounting Pronouncements

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement. The updated guidance modifies the disclosure requirements on fair value measurements by (1) removing certain disclosure requirements including

127

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

2. Summary of Significant Accounting Policies — (continued)

policies related to valuation processes and the timing of transfers between levels of the fair value hierarchy, (2) amending disclosure requirements related to measurement uncertainty from the use of significant unobservable inputs, and (3) adding certain new disclosure requirements including changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods therein, with early adoption permitted. The Company adopted this pronouncement in the fourth quarter of 2018. The adoption of this pronouncement did not have a material impact on the Company’s consolidated financial statements.

In May 2020, the SEC adopted rule amendments that will impact the requirements of investment companies, including BDCs, to disclose the financial statements of certain of their portfolio companies or certain acquired funds (the “Final Rules”). The Final Rules adopted a new definition of “significant subsidiary” set forth in Rule 1-02(w)(2) of Regulation S-X under the Securities Act. Rules 3-09 and 4-08(g) of Regulation S-X require investment companies to include separate financial statements or summary financial information, respectively, in such investment company’s periodic reports for any portfolio company that meets the definition of “significant subsidiary.” The Final Rules adopt a new definition of “significant subsidiary” applicable only to investment companies that (i) modifies the investment test and the income test, and (ii) eliminates the asset test currently in the definition of “significant subsidiary” in Rule 1-02(w) of Regulation S-X. The new Rule 1-02(w)(2) of Regulation S-X is intended to more accurately capture those portfolio companies that are more likely to materially impact the financial condition of an investment company. The Final Rules are effective on January 1, 2021, but voluntary compliance is permitted in advance of the effective date. The implementation of the Final Rules by the Company is not expected to have a material impact on its consolidated financial statements and related disclosures.

3. Management Fees, Incentive Compensation and Other Expenses

On February 8, 2019, the stockholders of the Company approved an amended investment management agreement to be effective on February 9, 2019 between the Company and the Advisor which (i) reduced the management fee on total assets (excluding cash and cash equivalents) that exceed an amount equal to 200% of the net asset value of the Company from 1.5% to 1.0%, (ii) reduced the incentive compensation on net investment income and net realized gains (reduced by any net unrealized losses) from 20% to 17.5% and (iii) reduced the cumulative total return hurdle from 8% to 7%.

Accordingly, the Company’s management fee is calculated at an annual rate of 1.5% on total assets (excluding cash and cash equivalents) up to an amount equal to 200% of the net asset value of the Company, and 1.0% thereafter. The management fee is calculated on a consolidated basis as of the beginning of each quarter and is payable to the Advisor quarterly in arrears.

Incentive compensation is only incurred to the extent the Company’s cumulative total return (after incentive compensation) exceeds a 7% annual rate on daily weighted-average contributed common equity. Subject to that limitation, incentive compensation is calculated on ordinary income (before incentive compensation) and net realized gains (net of any unrealized depreciation) at rates of 17.5% on income since the fee reduction on February 8, 2019 and 20% previously. Incentive compensation is computed as the difference between incentive compensation earned and incentive compensation paid, subject to the total return hurdle, on a cumulative basis since January 1, 2013, and is payable quarterly in arrears. Accordingly, the incentive compensation for any period may include amounts not earned in prior periods (due to the Company’s cumulative total return falling below the total return hurdle in such period), but subsequently earned when the Company’s cumulative total return again exceeds the total return hurdle (such amount, a “Catchup Amount”). During the year ended December 31, 2020, the Company incurred a Catchup Amount of approximately $3.9 million, comprised of amounts related to net investment income for the three months ended March 31, 2020 but not paid in such period due to a temporary decline in asset valuations

128

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

3. Management Fees, Incentive Compensation and Other Expenses — (continued)

(the “First Quarter Catchup Amount”). However, rather than receiving all incentive compensation earned as of June 30, 2020, the Advisor voluntarily deferred 5/6 of the First Quarter Catchup Amount to subsequent quarters such that 1/6 of the First Quarter Catchup Amount will be paid in each subsequent quarter to the extent that the Company’s cumulative performance exceeds the total return hurdle in such quarter. As of December 31, 2020, the Company's cumulative performance continued to exceed the total return hurdle, and as such the incentive fee for the year included $1.9 million, or 3/6 of the First Quarter Catchup Amount.

A reserve for incentive compensation is accrued based on the amount of any additional incentive compensation that would have been payable to the Advisor assuming a hypothetical liquidation of the Company at net asset value on the balance sheet date. As of December 31, 2020 and December 31, 2019, no such reserve was accrued.

Through December 31, 2017, the incentive compensation was an equity allocation to SVCP’s general partner under its limited partnership agreement (the “LPA”). On January 29, 2018, SVCP amended and restated its limited partnership agreement, effective as of January 1, 2018, to convert the existing incentive compensation structure from a profit allocation and distribution to SVCP’s general partner to a fee payable to the Advisor pursuant to the then-existing investment management agreements. The amendment had no impact on the amount of the incentive compensation paid or services received by the Company.

The Company bears all expenses incurred in connection with its business, including fees and expenses of outside contracted services, such as custodian, administrative, legal, audit and tax preparation fees, costs of valuing investments, insurance costs, brokers’ and finders’ fees relating to investments, and any other transaction costs associated with the purchase and sale of investments.

4. Leverage

Leverage is comprised of convertible senior unsecured notes due March 2022 issued by the Company (the “2022 Convertible Notes”), unsecured notes due August 2022 issued by the Company (the “2022 Notes”), unsecured notes due August 2024 issued by the Company (the “2024 Notes”), amounts outstanding under a senior secured revolving, multi-currency credit facility issued by SVCP (the “Operating Facility”), amounts outstanding under a senior secured revolving credit facility issued by TCPC Funding II (“Funding Facility II”) and debentures guaranteed by the SBA (the “SBA Debentures”). Prior to being replaced by Funding Facility II on August 4, 2020, leverage included $300.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding (“Funding Facility I”). Prior to its maturity on December 15, 2019, leverage also included convertible senior unsecured notes due December 2019 issued by the Company (the “2019 Convertible Notes”).

Total leverage outstanding and available at December 31, 2020 was as follows:


	Maturity	Rate		Carrying Value *		Available		Total Capacity
Operating Facility	2024	L+2.00%	†	$	120,454,270	$	179,545,730	$	300,000,000	‡
Funding Facility II	2025	L+2.00%	§	36,000,000		164,000,000		200,000,000		**
SBA Debentures	2024−2029	2.63%	††	138,000,000		12,000,000		150,000,000
2022 Convertible Notes ($140 million par)	2022	4.625%		139,219,797		—		139,219,797
2022 Notes ($175 million par)	2022	4.125%		174,778,395		—		174,778,395
2024 Notes ($250 million par)	2024	3.900%		247,871,909		—		247,871,909
Total leverage				856,324,371		$	355,545,730	$	1,211,870,101
Unamortized issuance costs				(6,308,172)
Debt, net of unamortized issuance costs				$	850,016,199

129

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

4. Leverage — (continued)

______________

* Except for the convertible notes, the 2022 Notes and the 2024 Notes, all carrying values are the same as the principal amounts outstanding.

† As of December 31, 2020, $9.0 million of the outstanding amount bore interest at a rate of EURIBOR + 2.00%.

‡ Facility has a $100 million accordion which allows for expansion of the facility to up to $400.0 million subject to consent from the lender and other customary conditions.

§ Subject to certain funding requirements

** Facility has a $50 million accordion which allows for expansion of the facility to up to $250.0 million subject to consent from the lender and other customary conditions.

†† Weighted-average interest rate, excluding fees of 0.35% or 0.36%

Total leverage outstanding and available at December 31, 2019 was as follows:


	Maturity	Rate			Carrying Value*		Available		Total Capacity
Operating Facility	2023	L+2.00%		†	$	108,497,620	$	161,502,380	$	270,000,000
Funding Facility I	2023	L+2.00%		‡	158,000,000		142,000,000		300,000,000
SBA Debentures	2024−2029	2.63	%	§	138,000,000		12,000,000		150,000,000
2022 Convertible Notes ($140 million par)	2022	4.625	%		138,584,313		—		138,584,313
2022 Notes ($175 million par)	2022	4.125	%		174,649,566		—		174,649,566
2024 Notes ($200 million par)	2024	3.900	%		197,782,572		—		197,782,572
Total leverage					915,514,071		$	315,502,380	$	1,231,016,451
Unamortized issuance costs					(7,711,684)
Debt, net of unamortized issuance costs					$	907,802,387

______________

* Except for the convertible notes, the 2022 Notes and the 2024 Notes, all carrying values are the same as the principal amounts outstanding.

† As of December 31, 2019, $8.3 million of the outstanding amount bore interest at a rate of EURIBOR + 2.00%.

‡ Subject to certain funding requirements

§ Weighted-average interest rate, excluding fees of 0.35% or 0.36%

The combined weighted-average interest rates on total leverage outstanding at December 31, 2020 and December 31, 2019 were 3.54% and 3.84%, respectively.

Total expenses related to debt included the following:


	Year Ended December 31,
	2020		2019		2018
Interest expense	$	36,488,786	$	41,660,478	$	35,613,605
Amortization of deferred debt issuance costs	3,504,578		3,640,812		3,856,735
Commitment fees	1,243,671		1,097,505		998,421
Total	$	41,237,035	$	46,398,795	$	40,468,761

130

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

4. Leverage — (continued)

Outstanding leverage is carried at amortized cost in the Consolidated Statements of Assets and Liabilities. As of December 31, 2020, the estimated fair values of the Operating Facility, Funding Facility II and the SBA Debentures approximated their carrying values, and the 2022 Convertible Notes, the 2022 Notes and the 2024 Notes had estimated fair values of $142.6 million, $180.4 million and $261.4 million, respectively. As of December 31, 2019, the estimated fair values of the Operating Facility, Funding Facility I and the SBA Debentures approximated their carrying values, and the 2022 Convertible Notes, the 2022 Notes and the 2024 Notes had estimated fair values of $144.0 million, $181.6 million and $205.0 million, respectively. The estimated fair values of the Operating Facility, Funding Facility I, Funding Facility II and the SBA Debentures were determined by discounting projected remaining payments using market interest rates for borrowings of the Company and entities with similar credit risks at the measurement date. The estimated fair values of the 2022 Convertible Notes, 2022 Notes and 2024 Notes were determined using market quotations. The estimated fair values of the Operating Facility, Funding Facility I, Funding Facility II, the convertible notes, the 2022 Notes, the 2024 Notes and the SBA Debentures as prepared for disclosure purposes were deemed to be Level 3 in the GAAP valuation hierarchy.

Convertible Unsecured Notes

On June 11, 2014, the Company issued $108.0 million of convertible senior unsecured notes, which matured on December 15, 2019. The 2019 Convertible Notes were general unsecured obligations of the Company, and ranked structurally junior to the revolving credit facilities and the SBA Debentures. The 2019 Convertible Notes bore interest at an annual rate of 5.25% and were redeemed in full at maturity.

On August 30, 2016, the Company issued $140.0 million of convertible senior unsecured notes that mature on March 1, 2022, unless previously converted or repurchased in accordance with their terms. The 2022 Convertible Notes are general unsecured obligations of the Company, and rank structurally junior to the Operating Facility, Funding Facility II and the SBA Debentures. The Company does not have the right to redeem the 2022 Convertible Notes prior to maturity. The 2022 Convertible Notes bear interest at an annual rate of 4.625%, payable semi-annually. In certain circumstances, the 2022 Convertible Notes will be convertible into cash, shares of the Company’s common stock or a combination of cash and shares of common stock (such combination to be at the Company’s election), at an initial conversion rate of 54.5019 shares of common stock per one thousand dollar principal amount of the 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $18.35 per share of common stock, subject to customary anti-dilutional adjustments. The initial conversion price was approximately 10.0% above the $16.68 per share closing price of the Company’s common stock on August 30, 2016. At December 31, 2020, the principal amount of the 2022 Convertible Notes exceeded the value of the conversion rate multiplied by the per share closing price of the Company’s common stock. Therefore, no additional shares have been added to the calculation of diluted earnings per common share and weighted average common shares outstanding.

Prior to the close of business on the business day immediately preceding September 1, 2021, holders may convert their 2022 Convertible Notes only under certain circumstances set forth in the indenture governing the terms of the 2022 Convertible Notes. On or after September 1, 2021 until the close of business on the scheduled trading day immediately preceding March 1, 2022, holders may convert their 2022 Convertible Notes at any time. Upon conversion, the Company will pay or deliver, as the case may be, at its election, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, subject to the requirements of the indenture.

The 2019 Convertible Notes and 2022 Convertible Notes were accounted for in accordance with ASC Topic 470-20 – Debt with Conversion and Other Options. Upon conversion of any of the 2022 Convertible Notes, the Company intends to pay the outstanding principal amount in cash and, to the extent that the conversion value exceeds the principal amount, has the option to pay the excess amount in cash or shares of the Company’s common stock (or a combination of cash and shares), subject to the requirements of the respective indenture. The Company has

131

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

4. Leverage — (continued)

determined that the embedded conversion options in the 2019 Convertible Notes and 2022 Convertible Notes were not required to be separately accounted for as derivatives under GAAP. At the time of issuance the estimated values of the debt and equity components of the 2019 Convertible Notes were approximately 97.7% and 2.3%, respectively. At the time of issuance the estimated values of the debt and equity components of the 2022 Convertible Notes were approximately 97.6% and 2.4%, respectively.

The original issue discounts equal to the equity components of the 2019 Convertible Notes and 2022 Convertible Notes were recorded in “paid-in capital in excess of par” in the accompanying Consolidated Statements of Assets and Liabilities. As a result, the Company records interest expense comprised of both stated interest and amortization of the original issue discounts. At the time of issuance, the equity components of the 2019 Convertible Notes and the 2022 Convertible Notes were $2.5 million and $3.3 million, respectively. As of December 31, 2020 and December 31, 2019, the components of the carrying values of the 2022 Convertible Notes were as follows:


	December 31, 2020		December 31, 2019
Principal amount of debt	$	140,000,000	$	140,000,000
Original issue discount, net of accretion	(780,203)		(1,415,687)
Carrying value of debt	$	139,219,797	$	138,584,313

For the years ended December 31, 2020, 2019 and 2018, the components of interest expense for the convertible notes were as follows:


	Year Ended December 31,
	2020			2019				2018
	2019 Convertible Notes	2022 Convertible Notes		2019 Convertible Notes		2022 Convertible Notes		2019 Convertible Notes		2022 Convertible Notes
Stated interest expense	N/A	$	6,475,000	$	5,433,750	$	6,475,000	$	5,670,000	$	6,475,000
Amortization of original issue discount	N/A	635,485		497,813		604,127		490,145		574,316
Total interest expense	N/A	$	7,110,485	$	5,931,563	$	7,079,127	$	6,160,145	$	7,049,316

The estimated effective interest rate of the debt component of the 2019 Convertible Notes, equal to the stated interest of 5.25% plus the accretion of the original issue discount, was approximately 5.75% for the year ended December 31, 2019 and December 31, 2018. The estimated effective interest rate of the debt component of the 2022 Convertible Notes, equal to the stated interest of 4.625% plus the accretion of the original issue discount, was approximately 5.125% for the years ended December 31, 2020, December 31, 2019 and December 31, 2018.

Unsecured Notes

On August 4, 2017, the Company issued $125.0 million of unsecured notes that mature on August 11, 2022, unless previously repurchased or redeemed in accordance with their terms. On November 3, 2017, the Company issued an additional $50.0 million of the 2022 Notes. The 2022 Notes bear interest at an annual rate of 4.125%, payable semi-annually, and all principal is due upon maturity. The 2022 Notes are general unsecured obligations of the Company and rank structurally junior to the Operating Facility, Funding Facility I, Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes and the 2024 Notes. The 2022 Notes may be redeemed in whole or part at the Company's option at a redemption price equal to par plus a "make whole" premium, as determined pursuant to the indenture governing the 2022 Notes, and any accrued and unpaid interest. The 2022 Notes were issued at a discount to the principal amount.

132

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

4. Leverage — (continued)

On August 23, 2019, the Company issued $150.0 million of unsecured notes that mature on August 23, 2024, unless previously repurchased or redeemed in accordance with their terms. On November 26, 2019, the Company issued an additional $50.0 million of the 2024 Notes and on October 2, 2020, the Company issued an additional $50.0 million of the 2024 Notes for a total outstanding aggregate principal amount of $250.0 million. The 2024 Notes bear interest at an annual rate of 3.900%, payable semi-annually, and all principal is due upon maturity. The 2024 Notes are general unsecured obligations of the Company and rank structurally junior to the Operating Facility, Funding Facility I, Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes and the 2022 Notes. The 2024 Notes may be redeemed in whole or part at the Company's option at a redemption price equal to par plus a "make whole" premium, as determined pursuant to the indenture governing the 2024 Notes, and any accrued and unpaid interest. The 2024 Notes were issued at a discount to the principal amount.

As of December 31, 2020 and December 31, 2019, the components of the carrying value of the 2022 Notes and 2024 Notes were as follows:


	December 31, 2020				December 31, 2019
	2022 Notes		2024 Notes		2022 Notes		2024 Notes
Principal amount of debt	$	175,000,000	$	250,000,000	$	175,000,000	$	200,000,000
Original issue discount, net of accretion	(221,605)		(2,182,091)		(350,434)		(2,217,428)
Carrying value of debt	$	174,778,395	$	247,817,909	$	174,649,566	$	197,782,572

For the years ended December 31, 2020, 2019 and 2018, the components of interest expense for the 2022 Notes and 2024 Notes were as follows:


	Year Ended December 31,
	2020				2019				2018
	2022 Notes		2024 Notes		2022 Notes		2024 Notes		2022 Notes		2024 Notes
Stated interest expense	$	7,218,750	$	8,282,083	$	7,218,750	$	2,269,583	$	7,218,750	N/A
Amortization of original issue discount	128,829		463,837		123,569		129,572		118,574		N/A
Total interest expense	$	7,347,579	$	8,745,920	$	7,342,319	$	2,399,155	$	7,337,324	N/A

Operating Facility

The Operating Facility consists of a revolving, multi-currency credit facility which provides for amounts to be drawn up to $300.0 million, subject to certain collateral and other restrictions. During the second quarter of 2020, the Operating Facility was amended to extend the maturity date to May 6, 2024 and to increase its capacity from $270.0 million to $300.0 million, subject to consent from the applicable lenders and other customary conditions. On July 31, 2020, the Operating Facility was further amended to include a $100 million accordion feature which allows for expansion of the facility to up to $400.0 million subject to consent from the lender and other customary conditions. Most of the cash and investments held directly by SVCP, as well as the net assets of TCPC Funding, TCPC Funding II and the SBIC, are included in the collateral for the facility.

Borrowings under the Operating Facility generally bear interest at a rate of LIBOR plus 2.00%. In addition to amounts due on outstanding debt, the Operating Facility accrues commitment fees of 0.50% per annum on the unused portion of the facility, or 2.25% per annum on the unused portion that is greater than 60% of the total facility, if applicable. The Operating Facility may be terminated, and any outstanding amounts thereunder may

133

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

4. Leverage — (continued)

become due and payable, should SVCP fail to satisfy certain financial or other covenants. As of December 31, 2020, SVCP was in full compliance with such covenants.

Funding Facility I

Funding Facility I was a senior secured revolving credit facility which provided for amounts to be drawn up to $300.0 million, subject to certain collateral and other restrictions and had a maturity of May 31, 2023. Borrowings under Funding Facility I bore interest at a rate of LIBOR plus either 2.00% or 2.35% per annum, subject to certain funding requirements, plus an administrative fee of 0.25% per annum. In addition to amounts due on outstanding debt, the facility accrued commitment fees of 0.25% per annum on the unused portion of the facility, or 0.50% per annum when the unused portion is greater than 33% of the total facility, plus an administrative fee of 0.25% per annum. The facility was terminated in August 2020 and replaced with Funding Facility II. The Statement of Operations reflects a $2.4 million loss on the termination of this facility.

Funding Facility II

Funding Facility II is a senior secured revolving credit facility which provides for amounts to be drawn up to $200.0 million, subject to certain collateral and other restrictions. The facility contains an accordion feature which allows for expansion of the facility to up to $250.0 million subject to consent from the lender and other customary conditions. The cash and investments of TCPC Funding II are included in the collateral for the facility.

Borrowings under Funding Facility II bear interest at a rate of LIBOR plus 2.00% per annum, subject to certain funding requirements, plus a 0.35% fee on drawn amounts and an administrative fee of 0.15% per annum on the facility. The facility also accrues commitment fees of 0.35% per annum on the unused portion of the facility. The facility may be terminated, and any outstanding amounts thereunder may become due and payable, should TCPC Funding II fail to satisfy certain financial or other covenants. As of December 31, 2020, TCPC Funding II was in full compliance with such covenants.

SBA Debentures

As of December 31, 2020, the SBIC is able to issue up to $150.0 million in SBA Debentures, subject to funded regulatory capital and other customary regulatory requirements. As of December 31, 2020, SVCP had committed $79.0 million of regulatory capital to the SBIC, all of which had been funded. SBA Debentures are non-recourse and may be prepaid at any time without penalty. Once drawn, the SBIC debentures bear an interim interest rate of LIBOR plus 30 basis points. The rate then becomes fixed at the time of SBA pooling, which occurs twice each year, and is set to the then-current 10-year treasury rate plus a spread and an annual SBA charge.

SBA Debentures outstanding as of December 31, 2020 and December 31, 2019 were as follows:

134

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

4. Leverage — (continued)


Issuance Date	Maturity	Debenture Amount		Fixed Interest Rate			SBA Annual Charge
September 24, 2014	September 1, 2024	$	18,500,000	3.02	%		0.36	%
March 25, 2015	March 1, 2025	9,500,000		2.52	%		0.36	%
September 23, 2015	September 1, 2025	10,800,000		2.83	%		0.36	%
March 23, 2016	March 1, 2026	4,000,000		2.51	%		0.36	%
September 21, 2016	September 1, 2026	18,200,000		2.05	%		0.36	%
September 20, 2017	September 1, 2027	14,000,000		2.52	%		0.36	%
March 21, 2018	March 1, 2028	8,000,000		3.19	%		0.35	%
September 19, 2018	September 1, 2028	15,000,000		3.55	%		0.35	%
September 25, 2019	September 1, 2029	40,000,000		2.28	%		0.35	%
		$	138,000,000	2.63	%	*

_____________

* Weighted-average interest rate

5. Commitments, Contingencies, Concentration of Credit Risk and Off-Balance Sheet Risk

SVCP, TCPC Funding, TCPC Funding II and the SBIC conduct business with brokers and dealers that are primarily headquartered in New York and Los Angeles and are members of the major securities exchanges. Banking activities are conducted with a firm headquartered in the San Francisco area.

In the normal course of business, investment activities involve executions, settlement and financing of various transactions resulting in receivables from, and payables to, brokers, dealers and the custodian. These activities may expose the Company to risk in the event that such parties are unable to fulfill contractual obligations. Management does not anticipate any material losses from counterparties with whom it conducts business. Consistent with standard business practice, the Company, SVCP, TCPC Funding, TCPC Funding II and the SBIC enter into contracts that contain a variety of indemnifications, and are engaged from time to time in various legal actions. The maximum exposure under these arrangements and activities is unknown. However, management expects the risk of material loss to be remote.

The Consolidated Schedules of Investments include certain revolving loan facilities and other commitments with unfunded balances at December 31, 2020 and December 31, 2019 as follows:

135

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

5. Commitments, Contingencies, Concentration of Credit Risk and Off-Balance Sheet Risk — (continued)

Unfunded Balances

Issuer

Maturity

December 31, 2020

December 31, 2019

2-10 Holdco, Inc.

10/31/2024

416,667

Acquia Inc.

11/1/2025

1,803,792

Applause App Quality, Inc.

9/20/2022

1,509,820

Apptio, Inc.

1/10/2025

N/A

769,231

Auto Trakk SPV, LLC

12/21/2021

3,193,208

Bisnow, LLC

9/21/2022

N/A

1,200,000

Blue Star Sports Holdings, Inc.

6/15/2024

N/A

55,556

CAREATC, Inc.

3/14/2024

607,288

Certify, Inc.

2/28/2024

797,158

2,497,761

Donuts Inc.

9/17/2023

N/A

660,634

Dude Solutions Holdings, Inc.

6/13/2025

2,207,896

Edmentum, Inc.

12/9/2021

N/A

205,642

Home Partners of America, Inc.

10/13/2022

N/A

2,142,857

iCIMS, Inc.

9/12/2024

N/A

490,735

IT Parent, LLC (Insurance Technologies)

10/1/2026

125,000

N/A

JAMF Holdings, Inc.

11/13/2022

N/A

1,214,052

Kellermeyer Bergensons Services, LLC

11/7/2026

1,588,235

3,464,052

Khoros LLC (Lithium)

10/3/2022

1,322,243

1,983,364

Olaplex, Inc.

1/8/2025

1,340,000

N/A

Patient Point Network Solutions, LLC

6/26/2022

528,187

176,190

Pegasus Business Intelligence, LP (Onyx Centersource)

12/20/2021

N/A

671,356

Pulse Secure, LLC

8/22/2025

N/A

1,342,516

ResearchGate GmBH

10/1/2022

8,286,000

Rhode Holdings, Inc. (Kaseya)

5/3/2025

2,243,838

2,016,078

RigUp, Inc.

3/1/2024

9,666,667

N/A

Sandata Technologies, LLC

7/23/2024

2,250,000

Snow Software AB

4/17/2024

3,052,384

2,616,329

Sonny’s Enterprises, LLC

8/5/2026

9,208,057

N/A

Space Midco, Inc. (Archibus)

12/5/2023

277,778

Spark Networks, Inc.

7/1/2023

1,005,887

Superman Holdings, LLC (Foundation Software)

8/31/2026

1,256,026

N/A

Team Software, Inc.

9/17/2023

2,457,847

2,282,287

Telarix, Inc.

11/19/2023

357,143

178,571

Thras.io, LLC

12/18/2026

9,939,759

N/A

TPC Intermediate Holdings, LLC

5/15/2020

N/A

4,363,137

Unanet, Inc.

5/31/2024

2,525,510

4,974,490

VSS-Southern Holdings, LLC

3/31/2022

N/A

1,027,397

Xactly Corporation

7/31/2022

854,898

1,405,501

Total Unfunded Balances

68,821,288

57,296,072

136

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

6. Related Party Transactions

The Company, SVCP, TCPC Funding, TCPC Funding II, the SBIC, the Advisor and their members and affiliates may be considered related parties. From time to time, SVCP advances payments to third parties on behalf of the Company which are reimbursable through deductions from distributions to the Company. At December 31, 2020 and December 31, 2019, no such amounts were outstanding. From time to time, the Advisor advances payments to third parties on behalf of the Company and SVCP and receives reimbursement from the Company. At December 31, 2020 and December 31, 2019, amounts reimbursable to the Advisor totaled $1.3 million and $1.6 million, respectively, as reflected in the Consolidated Statements of Assets and Liabilities.

Pursuant to an administration agreement between the Administrator and the Company (the “Administration Agreement”), the Administrator may be reimbursed for costs and expenses incurred by the Administrator for office space rental, office equipment and utilities allocable to the Company, as well as costs and expenses incurred by the Administrator or its affiliates relating to any administrative, operating, or other non-investment advisory services provided by the Administrator or its affiliates to the Company. For the years ended December 31, 2020, 2019 and 2018, expenses allocated pursuant to the Administration Agreement totaled $2.2 million, $2.3 million and $2.4 million, respectively.

7. Stockholders’ Equity and Dividends

The following table summarizes the total shares issued and proceeds received in connection with the Company’s dividend reinvestment plan for the years ended December 31, 2020 and 2019:


	2020		2019
Shares Issued	838		819
Average Price Per Share	$	7.46	$	13.98
Proceeds	$	6,253	$	11,453

The Company’s dividends are recorded on the ex-dividend date. The following table summarizes the Company’s dividends declared and paid for the years ended December 31, 2020:

Date Declared

Record Date

Payment Date

Type

Amount Per Share

Total Amount

February 26, 2020

March 17, 2020

March 31, 2020

Regular

0.36

21,155,913

May 11, 2020

June 16, 2020

June 30, 2020

Regular

0.36

20,796,088

August 6, 2020

September 16, 2020

September 30, 2020

Regular

0.30

17,330,179

November 2, 2020

December 17, 2020

December 31, 2020

Regular

0.30

17,330,179

1.32

76,612,359

The following table summarizes the Company’s dividends declared and paid for the year ended December 31, 2019:


Date Declared	Record Date	Payment Date	Type	Amount Per Share		Total Amount
February 28, 2019	March 15, 2019	March 29, 2019	Regular	$	0.36	$	21,155,619
May 8, 2019	June 14, 2019	June 28, 2019	Regular	0.36		21,155,688
August 8, 2019	September 16, 2019	September 30, 2019	Regular	0.36		21,155,760
November 6, 2019	December 17, 2019	December 31, 2019	Regular	0.36		$	21,155,837
				$	1.44	$	84,622,904

137

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

7. Stockholders’ Equity and Dividends — (continued)

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 Securities Exchange Act of 1934. 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 October 29, 2020, to be in effect through the earlier of two trading days after the Company’s fourth quarter 2020 earnings release unless further extended or terminated by the Company’s board of directors, or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.

The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the years ended December 31, 2020:


	Shares Repurchased	Price Per Share			Total Cost
Company Repurchase Plan	1,000,000	$	6.10	*	$	6,100,190

______________

* Weighted-average price per share

The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the year ended December 31, 2019:


	Shares Repurchased	Price Per Share			Total Cost
Company Repurchase Plan	9,000	$	13.96	*	$	125,679

______________

* Weighted-average price per share

8. Earnings Per Share

In accordance with ASC 260, Earnings per Share, basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, if any, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The following information sets forth the computation of the net increase in net assets per share resulting from operations for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020		2019		2018
Net increase in net assets resulting from operations	$	71,374,488	$	30,580,789	$	45,475,882
Weighted average shares outstanding	57,991,233		58,766,362		58,815,216
Earnings per share	$	1.23	$	0.52	$	0.77

138

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

9. Subsequent Events

139

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

10. Financial Highlights

The financial highlights below show the Company's results of operations for each of the five years ended December 31, 2020, as applicable.


	Year Ended December 31,
	2020				2019				2018				2017			2016
Per Common Share
Per share NAV at beginning of year	$	13.21			$	14.13			$	14.80			$	14.91		$	14.78

Investment operations:
Net investment income before income taxes	1.43				1.61				1.59				1.99			1.88
Excise taxes	—				—				—				—			(0.01)
Net investment income	1.43				1.61				1.59				1.99			1.87
Net realized and unrealized losses	(0.16)				(1.09)				(0.82)				(0.40)			—
Incentive allocation reserve and distributions	N/A			*	N/A			*	N/A			*	(0.4)			(0.37)
Total from investment operations	1.27				0.52				0.77				1.19			1.50

Issuance of common stock	—				—				—				0.14			0.01
Repurchase of common stock	0.12				—				—				—			—
Issuance of convertible debt	—				—				—				—			0.06
Loss on extinguishment of debt	(0.04)				—				—				—			—

Ordinary income dividends	(1.13)				(1.40)				(1.44)				(1.44)			(1.44)
Tax basis returns of capital	(0.19)				(0.04)				—				—			—
Total dividends to common shareholders	(1.32)				(1.44)				(1.44)				(1.44)			(1.44)

Per share NAV at end of year	$	13.24			$	13.21			$	14.13			$	14.80		$	14.91

Per share market price at end of year	$	11.24			$	14.05			$	13.04			$	15.28		$	16.90

Total return based on market value (1), (2)	(10.6)		%		18.8		%		(5.2)		%		(1.1)		%	31.7		%
Total return based on net asset value (1), (3)	10.2		%		3.7		%		5.2		%		8.9		%	10.6		%

Shares outstanding at end of year	57,767,264				58,766,426				58,774,607				58,847,256			53,041,900

* Effective January 1, 2018, incentive compensation was converted from a partnership profit allocation and distribution to a fee.

140

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

10. Financial Highlights — (continued)


	Year Ended December 31,
	2020			2019			2018			2017			2016
Ratios to average common equity:
Net investment income (1)	11.3		%	11.6		%	10.8		%	10.6		%	10.1		%
Expenses before incentive compensation (2)	10.0		%	9.8		%	8.5		%	7.3		%	6.9		%
Expenses and incentive compensation (3)	12.1		%	12.3		%	11.2		%	9.9		%	9.4		%

Ending common shareholder equity	$	764,986,578		$	776,318,386		$	830,474,727		$	870,728,126		$	790,935,991
Portfolio turnover rate	28.3		%	35.9		%	32.3		%	45.9		%	37.9		%
Weighted-average leverage outstanding	$	936,157,021		$	902,977,493		$	769,065,775		$	623,666,655		$	542,421,190
Weighted-average interest rate on leverage	3.9		%	4.6		%	4.6		%	4.5		%	3.9		%
Weighted-average number of common shares	57,991,233			58,766,362			58,815,216			57,000,658			50,948,035
Average leverage per share	$	16.14		$	15.37		$	13.08		$	10.94		$	10.65


Asset Coverage:	As of December 31,
	2020			2019			2018			2017			2016
Debt
Debt outstanding (4)	$	856,324,371		$	915,514,071		$	812,007,389		$	733,824,353		$	579,906,288
Asset coverage per $1,000 of debt outstanding	$	2,058		$	1,992		$	2,157		$	2,335		$	2,344

______________

(1)Net of incentive compensation and excise taxes.

(2)Includes interest and other debt costs but excludes excise taxes.

(3)Includes incentive compensation and all Company expenses including interest and other debt costs.

(4)Excludes unamortized debt issuance costs which are netted in the Consolidated Statements of Assets and Liabilities.

141

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

11. Select Quarterly Data (Unaudited)


	2020
	Q4		Q3		Q2		Q1
Total investment income	$	42,890,406	$	42,847,698	$	45,114,424	$	41,251,198
Net investment income before taxes	19,993,972		20,122,713		21,052,373		22,052,924
Excise taxes	—		—		—		—
Net investment income	19,993,972		20,122,713		21,052,373		22,052,924
Net realized and unrealized gain (loss)	27,994,361		28,830,499		25,298,894		(91,534,335)
Realized loss on extinguishment of debt	—		(2,436,913)		—		—
Net increase in net assets resulting from operations	$	47,988,333	$	46,516,299	$	46,351,267	$	(69,481,411)
Basic and diluted earnings per share	$	0.83	$	0.81	$	0.80	$	(1.20)

	2019
	Q4		Q3		Q2		Q1
Total investment income	$	47,810,412	$	51,640,349	$	48,174,625	$	47,540,529
Net investment income before taxes	22,410,163		25,314,195		23,813,637		23,320,098
Excise taxes	—		—		—		—
Net investment income	22,410,163		25,314,195		23,813,637		23,320,098
Net realized and unrealized gain (loss)	(23,565,362)		(6,876,144)		(34,637,520)		801,722
Net increase in net assets resulting from operations	$	(1,155,199)	$	18,438,051	$	(10,823,883)	$	24,121,820
Basic and diluted earnings per share	$	(0.02)	$	0.31	$	(0.18)	$	0.41

	2018
	Q4		Q3		Q2		Q1
Total investment income	$	48,382,641	$	49,480,586	$	48,420,911	$	44,215,046
Net investment income before taxes	23,454,080		24,511,933		23,946,229		21,565,113
Excise taxes	92,700.00		—		—		—
Net investment income	23,361,380		24,511,933		23,946,229		21,565,113
Net realized and unrealized gain (loss)	(24,383,303)		(9,320,557)		(19,828,585)		5,623,672
Net increase in net assets resulting from operations	$	(1,021,923)	$	15,191,376	$	4,117,644	$	27,188,785
Basic and diluted earnings per share	$	(0.02)	$	0.26	$	0.07	$	0.46

142

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020

12. Senior Securities

Information about the Company's senior securities is shown in the following table as of the end of each of the last ten fiscal years and the period ended December 31, 2020.


Class and Year	Total Amount Outstanding(1)	Asset Coverage Per Unit(2)	Involuntary Liquidating Preference Per Unit(3)	Average Market Value Per Unit(4)
Operating Facility
Fiscal Year 2020	$120,454	$9,508	—	N/A
Fiscal Year 2019	108,498	5,812	—	N/A
Fiscal Year 2018	82,000	5,221	—	N/A
Fiscal Year 2017	57,000	6,513	—	N/A
Fiscal Year 2016	100,500	4,056	—	N/A
Fiscal Year 2015	124,500	3,076	—	N/A
Fiscal Year 2014	70,000	5,356	—	N/A
Fiscal Year 2013	45,000	8,176	—	N/A
Fiscal Year 2012	74,000	7,077	—	N/A
Fiscal Year 2011	29,000	13,803	—	N/A
Fiscal Year 2010	50,000	8,958	—	N/A
Preferred Interests
Fiscal Year 2020	N/A	NA	N/A	N/A
Fiscal Year 2019	N/A	N/A	N/A	N/A
Fiscal Year 2018	N/A	N/A	N/A	N/A
Fiscal Year 2017	N/A	N/A	N/A	N/A
Fiscal Year 2016	N/A	N/A	N/A	N/A
Fiscal Year 2015	N/A	N/A	N/A	N/A
Fiscal Year 2014	$134,000	$51,592	$20,074	N/A
Fiscal Year 2013	134,000	68,125	20,075	N/A
Fiscal Year 2012	134,000	50,475	20,079	N/A
Fiscal Year 2011	134,000	49,251	20,070	N/A
Fiscal Year 2010	134,000	48,770	20,056	N/A
Funding Facility I
Fiscal Year 2020	N/A	N/A	—	N/A
Fiscal Year 2019	$158,000	$5,812	—	N/A
Fiscal Year 2018	212,000	5,221	—	N/A
Fiscal Year 2017	175,000	6,513	—	N/A
Fiscal Year 2016	175,000	4,056	—	N/A
Fiscal Year 2015	229,000	3,076	—	N/A
Fiscal Year 2014	125,000	5,356	—	N/A
Fiscal Year 2013	50,000	8,176	—	N/A
Funding Facility II
Fiscal Year 2020	$36,000	$9,508	—	N/A

143

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Continued)

December 31, 2020


Class and Year	Total Amount Outstanding(1)	Asset Coverage Per Unit(2)	Involuntary Liquidating Preference Per Unit(3)	Average Market Value Per Unit(4)
SBA Debentures
Fiscal Year 2020	$138,000	$9,508	—	N/A
Fiscal Year 2019	138,000	5,812	—	N/A
Fiscal Year 2018	98,000	5,221	—	N/A
Fiscal Year 2017	83,000	6,513	—	N/A
Fiscal Year 2016	61,000	4,056	—	N/A
Fiscal Year 2015	42,800	3,076	—	N/A
Fiscal Year 2014	28,000	5,356	—	N/A
2019 Convertible Notes
Fiscal Year 2020	N/A	N/A	—	N/A
Fiscal Year 2019	N/A	N/A	—	N/A
Fiscal Year 2018	$108,000	$2,157	—	N/A
Fiscal Year 2017	108,000	2,335	—	N/A
Fiscal Year 2016	108,000	2,352	—	N/A
Fiscal Year 2015	108,000	2,429	—	N/A
Fiscal Year 2014	108,000	3,617	—	N/A
2022 Convertible Notes
Fiscal Year 2020	$140,000	$2,058	—	N/A
Fiscal Year 2019	140,000	1,992	—	N/A
Fiscal Year 2018	140,000	2,157	—	N/A
Fiscal Year 2017	140,000	2,335	—	N/A
Fiscal Year 2016	140,000	2,352	—	N/A
2022 Notes
Fiscal Year 2020	$175,000	$2,058	—	N/A
Fiscal Year 2019	175,000	1,992	—	N/A
Fiscal Year 2018	175,000	2,157	—	N/A
Fiscal Year 2017	175,000	2,335	—	N/A
2024 Notes
Fiscal Year 2020	$250,000	$2,058	—	N/A
Fiscal Year 2019	200,000	1,992	—	N/A

______________

(1) Total amount of each class of senior securities outstanding at the end of the period presented (in 000’s).

(2) The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness. For the Operating Facility, Funding Facility I and Funding Facility II, the asset coverage ratio with respect to indebtedness is multiplied by $1,000 to determine the Asset Coverage Per Unit.

(3) The amount to which such class of senior security would be entitled upon the voluntary liquidation of the issuer in preference to any security junior to it. The “—” in this column indicates that the SEC expressly does not require this information to be disclosed for certain types of senior securities.

(4) The Company's senior securities are not registered for public trading.

144

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates(1)

Year Ended December 31, 2020


Security	Dividends or Interest (2)		Fair Value at December 31, 2019		Net realized gain or loss		Net increase or decrease in unrealized appreciation or depreciation		Acquisitions (3)		Dispositions (4)		Fair Value at December 31, 2020
AGY Holding Corp., Common Stock	$	—	$	—	$	—	$	—	$	—	$	—	$	—
AGY Holding Corp., Senior Secured 2nd Lien Notes, 11%, due 12/15/25	—		3,708,428		(8,778,822)		5,070,394		—		—		—
AGY Holding Corp., Senior Secured Delayed Draw Term Loan A, 12%, due 9/15/20	94,024		—		—		—		1,227,453		(1,227,453)		—
AGY Holding Corp., Senior Secured Delayed Draw Term Loan, 12%, due 9/15/20	59,678		1,114,120		(1,174,170)		—		60,050		—		—
AGY Holding Corp., Senior Secured Term Loan A1, 12%, due 9/15/20	97,185		—		—		—		721,296		(721,296)		—
AGY Holding Corp., Senior Secured Term Loan, 12%, due 9/15/20	155,135		5,171,151		(4,589,653)		—		156,858		(738,356)		—
Edmentum Ultimate Holdings, LLC, Class A Common Units	2,623,729		1,433,968		4,380,041		(753,742)		—		(5,060,267)		—
Edmentum Ultimate Holdings, LLC, Junior PIK Notes, 10%, due 12/9/21	1,850,985		17,609,276		—		(72,760)		1,927,179		(19,463,695)		—
Edmentum Ultimate Holdings, LLC, Senior PIK Notes, 8.5%, due 6/9/20	313,061		3,675,888		—		—		327,176		(4,003,064)		—
Edmentum Ultimate Holdings, LLC, Warrants to Purchase Class A Common Units	—		7,084,470		4,947,853		(7,084,469)		—		(4,947,854)		—
Edmentum, Inc., Junior Revolving Facility, 5%, due 6/9/20	266,556		5,235,978		—		(5)		474,037		(5,710,010)		—
Edmentum, Inc., Senior Secured 1st Lien Term Loan B, 8.5%, due 6/9/21	2,194,392		10,740,023		—		(1,173,442)		1,466,235		(11,032,816)		—
Edmentum, Inc., Senior Secured 2nd Lien Term Loan, 7% PIK, due 12/8/21	576,320		8,281,661		—		(8)		603,596		(8,885,249)		—
Edmentum, Inc., Senior Secured 2nd Lien Revolver, 5% PIK, due 12/9/21	834,028		—		—		—		5,805,188		(5,805,188)		—
Educationcity Limited (Edmentum), Senior Unsecured Promissory Note, 10%, due 8/31/20	329,098		—		—		—		3,707,423		(3,707,423)		—
Iracore International Holdings, Inc., Senior Secured 1st Lien Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21	169,286		1,635,903		—		—		—		(311,763)		1,324,140
Iracore Investments Holdings, Inc., Class A Common Stock	—		2,476,881		—		2,704,645		—		—		5,181,526
KAGY Holding Company, Inc., Series A Preferred Stock	—		—		(1,091,199)		1,091,199		—		—		—
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units	—		6,925,848		—		476,040		—		—		7,401,888
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Warrants to Purchase Class A Units	—		391,407		—		46,754		—		—		438,161
NEG Parent, LLC (CORE Entertainment, Inc.), Class B Warrants to Purchase Class A Units	—		395,290		—		47,218		—		—		442,508
NEG Parent, LLC (CORE Entertainment, Inc.), Litigation Trust Units	—		—		45,038		—		—		(45,038)		—
TVG-Edmentum Holdings, LLC, Series A Preferred Units	—		—		—		155,201		27,603,779		—		27,758,980
TVG-Edmentum Holdings, LLC, Series B-1 Common Units	—		—		—		90,570		13,421,162		—		13,511,732
TVG-Edmentum Holdings, LLC, Series B-2 Common Units	—		—		—		(552,915)		13,421,162		—		12,868,247
Total	$	9,563,477	$	75,880,292	$	(6,260,912)	$	44,680	$	70,922,594	$	(71,659,472)	$	68,927,182

______________

Notes to Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates:

(1)The issuers of the securities listed on this schedule are considered non-controlled affiliates under the Investment Company Act of 1940 due to the ownership by the Company of 5% to 25% of the issuers' voting securities.

(2)Also includes fee and lease income as applicable.

(3)Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)Dispositions include decreases in the cost basis from sales, paydowns, mortgage amortizations and aircraft depreciation.

145

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Controlled Affiliates(1)

Year Ended December 31, 2020


Security	Dividends or Interest (2)		Fair Value at December 31, 2019		Net realized gain or loss		Net increase or decrease in unrealized appreciation or depreciation		Acquisitions (3)		Dispositions (4)		Fair Value at December 31, 2020
36th Street Capital Partners Holdings, LLC, Membership Units	$	2,471,415	$	31,682,859	$	—	$	1,452,141	$	—	$	—	$	33,135,000
36th Street Capital Partners Holdings, LLC, Senior Note, 12%, due 11/1/20	4,900,130		40,834,419		—		—		—		—		40,834,419
Anacomp, Inc., Class A Common Stock	—		1,167,640		—		(765,871)		—		—		401,769
Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 0%, due 6/30/21	44,223		1,207,786		—		(390,084)		336,334		—		1,154,036
Conergy Asia Holdings Limited, Class B Shares	—		—		—		—		—		—		—
Conergy Asia Holdings Limited, Ordinary Shares	—		—		—		—		—		—		—
Conventional Lending TCP Holdings, LLC, Membership Units	1,436,922		14,269,948		—		(950,043)		4,730,921		—		18,050,826
Kawa Solar Holdings Limited, Bank Guarantee Credit Facility, 0%, due 12/31/21	—		3,289,438		—		46,710		—		—		3,336,148
Kawa Solar Holdings Limited, Ordinary Shares	—		—		—		—		—		—		—
Kawa Solar Holdings Limited, Revolving Credit Facility, 0%, due 12/31/21	—		2,208,823		—		(94,490)		—		—		2,114,333
Kawa Solar Holdings Limited, Series B Preferred Shares	—		—		—		—		—		—		—
United N659UA-767, LLC (Aircraft Trust Holding Company)	26,635		2,300,366		(32,062)		(134,933)		—		(2,133,371)		—
United N661UA-767, LLC (Aircraft Trust Holding Company)	11,502		2,347,314		162,012		(121,954)		—		(2,387,372)		—
Total	$	8,890,827	$	99,308,593	$	129,950	$	(958,524)	$	5,067,255	$	(4,520,743)	$	99,026,531

______________

Notes to Consolidated Schedule of Changes in Investments in Controlled Affiliates:

(1)The issuers of the securities listed on this schedule are considered controlled affiliates under the Investment Company Act of 1940 due to the ownership by the Company of more than 25% of the issuers' voting securities.

(2)Also includes fee and lease income as applicable.

(3)Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)Dispositions include decreases in the cost basis from sales, paydowns, mortgage amortizations and aircraft depreciation.

146

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates (1)

Year Ended December 31, 2019


Security	Dividends or Interest (2)		Fair Value at December 31, 2018		Net realized gain or loss		Net increase or decrease in unrealized appreciation or depreciation		Acquisitions (3)		Dispositions (4)		Fair Value at December 31, 2019
AGY Holding Corp., Common Stock	$	—	$	—	$	—	$	—	$	—	$	—	$	—
AGY Holding Corp., Senior Secured 2nd Lien Notes, 11%, due 11/15/20	545,334		9,777,740		—		(6,752,077)		682,765		—		3,708,428
AGY Holding Corp., Senior Secured Delayed Draw Term Loan, 12%, due 9/15/20	128,644		1,049,147		—		—		64,973		—		1,114,120
AGY Holding Corp., Senior Secured Term Loan, 12%, due 9/15/20	597,096		4,869,577		—		—		301,574		—		5,171,151
Edmentum Ultimate Holdings, LLC, Class A Common Units	—		—		—		1,433,968		—		—		1,433,968
Edmentum Ultimate Holdings, LLC, Junior PIK Notes, 10%, due 6/9/20	1,864,600		11,152,078		—		4,621,493		1,835,705		—		17,609,276
Edmentum Ultimate Holdings, LLC, Senior PIK Notes, 8.5%, due 6/9/20	304,833		3,375,453		—		—		300,435		—		3,675,888
Edmentum Ultimate Holdings, LLC, Warrants to Purchase Class A Common Units	—		—		—		7,084,470		—		—		7,084,470
Edmentum, Inc., Junior Revolving Facility, 5%, due 6/9/20	217,659		1,153,076		—		—		6,149,380		(2,066,478)		5,235,978
Edmentum, Inc., Senior Secured 1st Lien Term Loan B, 8.5%, due 6/9/21	1,327,742		6,187,478		—		262,555		4,289,990		—		10,740,023
Edmentum, Inc., Senior Secured 2nd Lien Term Loan, 7% PIK, due 12/8/21	569,374		7,719,069		—		—		562,592		—		8,281,661
Edmentum, Inc., Senior Unsecured Promissory Note, 10%, due 9/30/19	194,184		—		—		—		3,644,068		(3,644,068)		—
Educationcity Limited (Edmentum), Senior Unsecured Promissory Note, 10%, due 9/30/19	77,673		—		—		—		1,457,627		(1,457,627)		—
EPMC HoldCo, LLC, Membership Units	—		26,254		43,320		(26,254)		—		(43,320)		—
Green Biologics, Inc., Common Stock	—		3,670,777		(20,524,650)		14,851,816		2,006,277		(4,220)		—
Iracore International Holdings, Inc., Senior Secured 1st Lien Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21	220,506		1,900,733		—		—		—		(264,830)		1,635,903
Iracore Investments Holdings, Inc., Class A Common Stock	—		1,375,243		—		1,101,638		—		—		2,476,881
KAGY Holding Company, Inc., Series A Preferred Stock	—		969,224		—		(969,224)		—		—		—
NEG Holdings, LLC (CORE Entertainment, Inc.), Senior Secured 1st Lien Term Loan, LIBOR + 8% PIK, 1% LIBOR Floor, due 10/17/22	101,051		1,574,099		—		—		84,863		(1,658,962)		—
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units	—		6,543,086		—		382,762		—		—		6,925,848
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Warrants to Purchase Class A Units	—		364,299		—		27,107		—		—		391,406
NEG Parent, LLC (CORE Entertainment, Inc.), Class B Warrants to Purchase Class A Units	—		367,914		—		27,376		—		—		395,290
NEG Parent, LLC (CORE Entertainment, Inc.), Litigation Trust Units	—		1,118,110		809,444		(1,118,110)		—		(809,444)		—
Total	$	6,148,696	$	63,193,357	$	(19,671,886)	$	20,927,520	$	21,380,249	$	(9,948,949)	$	75,880,291

______________

Notes to Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates:

(2)Also includes fee and lease income as applicable.

(3)Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)Dispositions include decreases in the cost basis from sales, paydowns, mortgage amortizations and aircraft depreciation.

147

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Controlled Affiliates (1)

Year Ended December 31, 2019


Security	Dividends or Interest (2)		Fair Value at December 31, 2018		Net realized gain or loss		Net increase or decrease in unrealized appreciation or depreciation		Acquisitions (3)		Dispositions (4)		Fair Value at December 31, 2019
36th Street Capital Partners Holdings, LLC, Membership Units	$	2,392,274	$	18,931,734	$	—	$	6,296,773	$	6,454,352	$	—	$	31,682,859
36th Street Capital Partners Holdings, LLC, Senior Note, 12%, due 11/1/20	3,874,967		27,839,419		—		—		12,995,000		—		40,834,419
Anacomp, Inc., Class A Common Stock	—		1,418,746		—		(251,106)		—		—		1,167,640
Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 10%, due 5/26/20	177,381		1,773,807		—		(566,022)		—		—		1,207,785
Conergy Asia Holdings Limited, Class B Shares	—		—		—		—		—		—		—
Conergy Asia Holdings Limited, Ordinary Shares	—		—		—		—		—		—		—
Conventional Lending TCP Holdings, LLC, Membership Units	981,790		—		—		—		14,269,948		—		14,269,948
Kawa Solar Holdings Limited, Bank Guarantee Credit Facility, 0%, due 5/26/20	—		11,682,923		—		(816,391)		—		(7,577,094)		3,289,438
Kawa Solar Holdings Limited, Ordinary Shares	—		—		—		(578,646)		—		578,646		—
Kawa Solar Holdings Limited, Revolving Credit Facility, 0%, due 5/26/20	—		2,922,269		—		(134,800)		—		(578,645)		2,208,824
Kawa Solar Holdings Limited, Series B Preferred Shares	—		—		—		—		—		—		—
United N659UA-767, LLC (Aircraft Trust Holding Company)	159,808		2,826,708		—		(164,500)		—		(361,842)		2,300,366
United N661UA-767, LLC (Aircraft Trust Holding Company)	138,019		2,896,083		—		(165,139)		—		(383,630)		2,347,314
Total	$	7,724,239	$	70,291,689	$	—	$	3,620,169	$	33,719,300	$	(8,322,565)	$	99,308,593

______________

Notes to Consolidated Schedule of Changes in Investments in Controlled Affiliates:

(2)Also includes fee and lease income as applicable.

(3)Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)Dispositions include decreases in the cost basis from sales, paydowns, mortgage amortizations and aircraft depreciation.

148

BlackRock TCP Capital Corp.

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers

December 31, 2020


Investment						Acquisition Date
Actifio, Inc., Warrants to Purchase Series F Preferred Stock						5/5/17
AutoAlert Acquisition Co, LLC, Warrants to Purchase LLC Interest						6/30/20
Avanti Communications Group, PLC (144A), Senior New Money Initial Note, 9%, due 10/1/22						1/26/17
Avanti Communications Group, PLC (144A), Senior Second-Priority PIK Toggle Note, 9%, due 10/1/22						1/26/17
Domo, Inc., Warrants to Purchase Common Stock						12/5/17
Envigo RMS Holding Corp., Common Stock						6/3/19
Fidelis (SVC) LLC, Series C Preferred Units						12/31/19
FinancialForce.com, Inc., Warrants to Purchase Series C Preferred Stock						1/30/19
Foursquare Labs, Inc., Warrants to Purchase Series E Preferred Stock						5/4/17
GACP I, LP (Great American Capital), Membership Units						10/1/15
GACP II, LP (Great American Capital), Membership Units						1/12/18
GlassPoint Solar, Inc., Warrants to Purchase Series C-1 Preferred Stock						2/7/17
GlassPoint Solar, Inc., Warrants to Purchase Series D Preferred Stock						3/16/18
InMobi, Inc., Warrants to Purchase Common Stock						8/22/17
InMobi, Inc., Warrants to Purchase Series E Preferred Stock						9/18/15
InMobi, Inc., Warrants to Purchase Series E Preferred Stock (Strike Price $28.58)						10/1/18
Nanosys, Inc., Warrants to Purchase Preferred Stock						3/29/16
Pico Quantitative Trading Holdings, LLC, Warrants to Purchase Membership Units						2/7/20
Quora, Inc., Warrants to Purchase Series D Preferred Stock						4/12/19
ResearchGate Corporation., Warrants to Purchase Series D Preferred Stock						11/7/19
SnapLogic, Inc., Warrants to Purchase Series Preferred Stock						3/20/18
Soraa, Inc., Warrants to Purchase Common Stock						8/29/14
Tradeshift, Inc., Warrants to Purchase Series D Preferred Stock						3/9/17
Utilidata, Inc., Common Stock						7/6/20
Utilidata, Inc., Series C Preferred Stock						7/6/20
Utilidata, Inc., Series CC Preferred Stock						7/6/20
V Telecom Investment S.C.A. (Vivacom), Common Shares						11/9/12

149

BlackRock TCP Capital Corp.

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers

December 31, 2019


Investment						Acquisition Date
Actifio, Inc., Warrants to Purchase Series G Preferred Stock						5/5/17
Adesto Technologies Corporation, Warrants to Purchase Common Stock						5/8/18
Avanti Communications Group, PLC (144A), Senior New Money Initial Note, 9% PIK, due 10/1/22						1/26/17
Avanti Communications Group, PLC (144A), Senior Second-Priority PIK Toggle Note, 9%, due 10/1/22						1/26/17
Domo, Inc., Warrants to Purchase Common Stock						12/5/17
Envigo RMS Holding Corp., Common Stock						6/3/19
Fidelis (SVC) LLC, Series C Preferred Units						12/31/19
FinancialForce.com, Inc., Warrants to Purchase Series C Preferred Stock						1/30/19
Findly Talent, LLC, Class A Membership Units						1/1/14
Foursquare Labs, Inc., Warrants to Purchase Series E Preferred Stock						5/4/17
GACP I, LP (Great American Capital), Membership Units						10/1/15
GACP II, LP (Great American Capital), Membership Units						1/12/18
GlassPoint Solar, Inc., Warrants to Purchase Series C-1 Preferred Stock						2/7/17
GlassPoint Solar, Inc., Warrants to Purchase Series D Preferred Stock						3/16/18
InMobi, Inc., Warrants to Purchase Common Stock						8/22/17
InMobi, Inc., Warrants to Purchase Series E Preferred Stock (Strike Price $20.01)						9/18/15
InMobi, Inc., Warrants to Purchase Series E Preferred Stock (Strike Price $28.58)						10/1/18
Nanosys, Inc., Warrants to Purchase Preferred Stock						3/29/16
Quora, Inc., Warrants to Purchase Series D Preferred Stock						4/12/19
ResearchGate Corporation., Warrants to Purchase Series D Preferred Stock						11/7/19
Shop Holding, LLC (Connexity), Class A Units						6/2/11
SnapLogic, Inc., Warrants to Purchase Series Preferred Stock						3/20/18
Soraa, Inc., Warrants to Purchase Common Stock						8/29/14
SoundCloud, Ltd., Warrants to Purchase Preferred Stock						4/30/15
STG-Fairway Holdings, LLC (First Advantage), Class A Units						12/30/10
Tradeshift, Inc., Warrants to Purchase Series D Preferred Stock						3/9/17
Utilidata, Inc., Warrants to Purchase Preferred Stock						12/22/15
V Telecom Investment S.C.A. (Vivacom), Common Shares						11/9/12

150

Item 9. Changes in Disagreements with Accountants on Accounting and Financial Disclosure

None

Item 9A. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

As of December 31, 2020 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

(b) Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2020. Internal control over financial reporting is a process designed by, or under the supervision of, our principal executive and principal financial officers, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Management performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2020 based upon the criteria set forth in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment, management determined that our internal control over financial reporting was effective as of December 31, 2020.

Our independent registered public accounting firm, Deloitte & Touche LLP, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting which is set forth under the heading “Report of Independent Registered Public Accounting Firm” on page 93.

(d) Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during our most recently completed fiscal quarter, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

151

Item 9B: Other Information.

None

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this item is contained in the Registrant’s definitive Proxy Statement for its 2021 Annual Stockholders Meeting to be filed with the Securities and Exchange Commission within 120 days after December 31, 2020 and is incorporated herein by reference.

Item 11. Executive Compensation

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13. Certain Relationships and Related Transactions, and Director Independence

Item 14. Principal Accountant Fees and Services

Item 15. Exhibits and Consolidated Financial Statement Schedules

a. Documents Filed as Part of this Report

The following reports and consolidated financial statements are set forth in Item 8:

152


			Page
Reports of Independent Registered Public Accounting Firm			93
Consolidated Statements of Assets and Liabilities as of December 31, 2020 and 2019			96
Consolidated Schedule of Investments as of December 31, 2020 and 2019			97
Consolidated Statements of Operations for the years ended December 31, 2020, 2019 and 2018			115
Consolidated Statements of Changes in Net Assets for the years ended December 31, 2020, 2019 and 2018			116
Consolidated Statements of Cash Flows for the years ended December 31, 2020, 2019 and 2018			117
Notes to Consolidated Financial Statements			118
Consolidated Schedules of Changes in Investments in Affiliates as of December 31, 2020 and 2019			145
Consolidated Schedules of Restricted Securities of Unaffiliated Issuers as of December 31, 2020 and 2019			149

b. Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC:


Number						Description
3.1						Certificate of Incorporation of the Registrant (1)
3.2						Certificate of Amendment to the Certificate of Incorporation of the Registrant (2)
3.3						Amended and Restated Bylaws of the Registrant (3)
4.1						Second Supplemental Indenture, dated as of August 23, 2019, by and between the Registrant and U.S. Bank National Association, as the Trustee (4)
4.2						Form of Global Note of 3.900% Notes due 2024 (included in Exhibit 4.1)(4)
4.3						Indenture, dated as of June 17, 2014, by and between the Registrant and U.S. Bank National Association, as the Trustee(11)
4.4						Form of Global Note of 5.25% Convertible Senior Notes Due 2019 (included in Exhibit 4.3)(11)
4.5						Indenture, dated as of September 6, 2016, by and between the Registrant and U.S. Bank National Association, as the Trustee(12)
4.6						Form of Global Note of 4.625% Convertible Senior Notes due 2022 (included in Exhibit 4.5) (12)
4.7						Indenture, dated as of August 11, 2017, by and between the Registrant and U.S. Bank National Association, as the Trustee(13)
4.8						First Supplemental Indenture, dated as of August 11, 2017, by and between the Registrant and U.S. Bank National Association, as the Trustee(14)
4.9						Form of Global Note of 4.125% Notes Due 2022 (included in Exhibit 4.8)(14)
4.10						Description of Securities(15)
4.11						Third Supplemental Indenture, dated as of February 9, 2021, by and between the Registrant and U.S. Bank National Association, as the Trustee(17)
4.12						Form of Global Note of 2.850% due 2026 (included in Exhibit 4.11)(17)
10.1						Form of Investment Management Agreement By and Between Registrant and Tennenbaum Capital Partners, LLC(5)
10.2						Form of Amended and Restated Investment Management Agreement By and Between Special Value Continuation Partners, LP and Tennenbaum Capital Partners, LLC(6)
10.3						Amended and Restated Investment Management Agreement By and Between Registrant and Tennenbaum Capital Partners, LLC(7)
10.4						Form of Administration Agreement of the Registrant(8)
10.5						Custodial Agreement dated as of July 31, 2006(9)
10.6						Form of Transfer Agency and Registrar Services Agreement(10)

153


10.8						Second Amended and Restated Partnership Agreement of Special Value Continuation Partners, LP dated January 29, 2018(16)
10.9						Amended and Restated Credit Agreement dated as of May 6, 2019(18)
10.1						Amended and Restated Guaranty, Pledge and Security Agreement dated as of May 6, 2019(19)
10.11						Amendment No. 1 to Amended and Restated Credit Agreement dated as of May 6, 2019(20)
10.12						Amendment No. 2 to Amended and Restated Credit Agreement dated as of May 6, 2019(21)
10.13						Incremental Commitment Agreement dated as of April 25, 2020(22)
10.14						Loan and Servicing Agreement dated as of August 4, 2020(23)
10.15						Form of License Agreement(24)
10.16						Amendment No. 4 to Amended & Restated Senior Secured Revolving Credit Agreement*
10.17						S econd Ame ndment to Loan and Servici ng Agreement *
11						Computation of Per Share Earnings (included in the notes to the financial statements contained in this report)
12						Computation of Ratios (included in the notes to the financial statements contained in this report)
14.1						Code of Ethics and Business Conduct*
21.1						Subsidiaries of the Registrant*
21.2						Consent of Independent Registered Public Accounting Firm *
31.1						Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*
31.2						Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*
32.1						Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U. S.C. 1350)*

______________

* Filed herewith.

(1)Incorporated by reference to Exhibit (a)(2) to the Registrant’s Registration Statement under the Securities Act of 1933 (File No. 333-172669), on Form N-2, filed on May 13, 2011

(2)Incorporated by reference to Exhibit 99.2 to the Registrant’s Form 8-K, filed on August 2, 2018

(3)Incorporated by reference to Exhibit 99.3 to the Registrant’s Form 8-K, filed on August 2, 2018

(4)Incorporated by reference to Exhibit 4.1 to the Registrant's Form 8-K, filed on August 23, 2019

(5) Incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, filed on August 2, 2018

(6) Incorporated by reference to Exhibit (k)(8) to the Registrant’s Registration Statement under the Securities Act of 1933 (File No. 333-172669), on Form N-2, filed on May 13, 2011.

(7) Incorporated by reference to Exhibit 99.1 to the Registrant’s Form 8-K, filed on February 12, 2019

(8) Incorporated by reference to Exhibit (k)(1) to the Registrant’s Registration Statement under the Securities Act of 1933 (File No. 333-172669), on Form N-2, filed on May 13, 2011.

(9) Incorporated by reference to Exhibit 10.2 to Form 10-12G of Special Value Continuation Partners, LP (File No. 000-54393), filed May 6, 2011.

(10) Incorporated by reference to Exhibit (k)(2) to the Registrant’s Registration Statement under the Securities Act of 1933 (File No. 333-172669), on Form N-2, filed on March 5, 2012

(11) Incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on June 17, 2014.

(12) Incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on September 6, 2016.

(13) Incorporated by reference to Exhibit (d)(1) to Post-Effective Amendment No. 1 to the Registrant’s Registration Statement under the Securities Act of 1933 (File No. 333-216716), on Form N-2, filed on August 11, 2017.

(14) Incorporated by reference to Exhibit (d)(4) to Post-Effective Amendment No. 1 to the Registrant's Registration Statement under the Securities Act of 1933 (File No. 333-216716), on Form N-2, filed on August 11, 2017.

(15) Incorporated by reference to Exhibit 4.11 to the Registrant's Form 10-Q on May 11, 2020.

154

(16) Incorporated by reference to Exhibit 3 to Special Value Continuation Partner, LP’s Form 8-K filed on January 30, 2018.

(17) Incorporated by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on February 9, 2021.

(18) Incorporated by reference to Exhibit 10.2 to the Registrant's Form 8-K filed on May 8, 2019.

(19) Incorporated by reference to Exhibit 10.3 to the Registrant's Form 8-K filed on May 8, 2019.

(20) Incorporated by reference to Exhibit 10.1 to the Registrant's Form 8-K filed on April 28, 2020.

(21) Incorporated by reference to Exhibit 10.2 to the Registrant's Form 8-K filed on April 28, 2020.

(22) Incorporated by reference to Exhibit 10.3 to the Registrant's Form 8-K filed on April 28, 2020.

(23) Incorporated by reference to Exhibit 10.1 to the Registrant's Form 8-K filed on August 6, 2020.

(24) Incorporated by reference to Exhibit 10.19 to the Registrant's Form 10-K filed on February 26, 2020.

155

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

BlackRock TCP Capital Corp.


			By:			/s/ Howard M. Levkowitz
			Name:			Howard M. Levkowitz
			Title:			Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the dates indicated.

Date

Signature

Title

February 25, 2021

/s/ Howard M. Levkowitz

Chief Executive Officer, Chairman of

Howard M. Levkowitz

the Board and Director (Principal Executive Officer)

February 25, 2021

/s/ Kathleen A. Corbet

Director

Kathleen A. Corbet

February 25, 2021

/s/ Eric J. Draut

Director

Eric J. Draut

February 25, 2021

/s/ M. Freddie Reiss

Director

M. Freddie Reiss

February 25, 2021

/s/ Peter E. Schwab

Director

Peter E. Schwab

February 25, 2021

/s/ Karyn L. Williams

Director

Karyn L. Williams

February 25, 2021

/s/ Andrea Petro

Director

Andrea Petro

February 25, 2021

/s/ Rajneesh Vig

President and Director

Rajneesh Vig

February 25, 2021

/s/ Paul L. Davis

Chief Financial Officer (Principal Financial Officer)

Paul L. Davis

156