Q1 2025 BlackRock TCP Capital Corp Earnings Call
Speaker Change: Hello everyone and thank you for standing by. Today's call will be beginning shortly.
Speaker Change: [music].
Speaker Change: Ladies and gentlemen, good afternoon, welcome everyone to Blackrock TCP Capital Corp, Q1, 2025 earnings call.
Speaker Change: Today's conference call is being recorded for replay purposes.
Speaker Change: During the presentation, all participants will be in a listen only by a question and answer session will follow the Companys formal remarks to ask a question. Please press the star key blurred by the digit one.
Speaker Change: I will repeat these instructions before we begin the Q&A session.
Speaker Change: And now I would like to turn the call over to Makena Laurie I remember at the Blackrock TCP Capital Corp, Investor Relations team.
Speaker Change: Please proceed.
Speaker Change: Thank you before we begin I will note that this conference call may contain forward looking statements based on the estimates and assumptions of management at the time of such statements and are not guarantees of future performance forward.
Speaker Change: Forward looking statements involve risks and uncertainties and actual results could differ materially from those projected.
Speaker Change: Any forward looking statements made on this call are made as of today and are subject to change without notice.
Speaker Change: Additionally, certain information discussed and presented May have been derived from third party sources and has not been independently verified accordingly, we make no representation or warranty with respect to such information.
Speaker Change: Earlier today, we issued our earnings release for the first quarter ended March 31, 2025, we also posted a supplemental earnings presentation to website at Ww Dot TCP capital Dot Com to view, the slide presentation, which we referred to on today's call. Please click on the Investor Relations link and select events and presentations.
Argument should be reviewed in conjunction with the company's Form 10-Q, which was filed with the SEC earlier today.
Speaker Change: Now I will turn the call over to our chairman co CIO and C E O sort of thing.
Speaker Change: Thank you Kayla and thank you all for joining our call.
Speaker Change: I'll begin with a brief overview of our results for the quarter and then share an update on our portfolio.
After that I'll turn the call over to our President Jason Mehring to review details of our investment activity.
Speaker Change: Eric <unk>, our CFO will then review our financial results in more detail.
Speaker Change: I'll follow Eric's remarks with commentary on the current market environment before we open the call up for questions.
Speaker Change: We're also joined today by Dan morale, our co CIO.
Speaker Change: Eric Wolfe our C O L.
Speaker Change: I am pleased to report that during the first quarter, we made meaningful progress in strengthening the portfolio.
Speaker Change: Although the impact of global macroeconomic factors, including tariffs.
Speaker Change: We are beginning to see signs of portfolio stabilization.
Speaker Change: We delivered solid results for the quarter.
Speaker Change: Adjusted net investment income was 36 per share.
Speaker Change: That with the prior quarter.
Speaker Change: Annualized net investment income Roe.
Speaker Change: It was 15, 4%.
And at net asset value per share.
18th.
Speaker Change: Compared to $9 23.
Speaker Change: In the fourth quarter.
Speaker Change: During the first quarter no new names were added to the nonaccrual list and the number of portfolio companies on nonaccrual status at quarter end declined meaningfully to eight from 12 in the prior quarter.
Speaker Change: Non accruals now comprised four 4% of our.
Speaker Change: Our portfolio at fair value down from five 6% or 120 basis points sequentially.
Speaker Change: During the quarter, we exited our non accrual positions. Its a curious mcafee CIBC <unk> all of which were broadly syndicated second lien loans that we believed offered limited near term upside.
Speaker Change: As we pointed out last quarter, we are primarily focused on investing in first lien loans and will only consider secondly loans in situations, where we are it vendor invoice.
Speaker Change: Subsequent to quarter end, we removed where novo from non accrual following the completion of a comprehensive recapitalization, which significantly delever its balance sheet.
Speaker Change: Since the recapitalization, we remained actively engaged with renewables management team they pursue a variety of initiatives aimed at improving performance.
Speaker Change: As a result of this action our pro forma nonaccrual percentage post quarter end decreased to four 1% at fair value and 11, 8% at cost.
Speaker Change: Our largest markdowns during the quarter were razor group.
Speaker Change: Gordon Brothers and Alpine also known as $40 40, which is a pallet management services provider that we haven't previously discussed.
Speaker Change: 48, 40 benefited from increased pallet demand coming out of Covid, but as the market began to normalize in 2023 volumes declined.
Speaker Change: While a slower than anticipated market recovery has pressured performance we remain confident in 48 forties position as a leader within the power space, which is a critical element of the supply chain and transport of essential goods we.
Speaker Change: We will continue to monitor closely $40 40, as performance and industry trends more broadly.
Speaker Change: We are focused on optimizing the outcome for each of these investments.
Speaker Change: Actively exploring solutions for our position in the Aggregators as well.
Speaker Change: Our largest markups, where job and talent a tech enabled staffing agency and auto alert and automotive data analytics platform, which we previously removed from non accrual status in the first quarter of 2023.
Speaker Change: We recently provided growth capital to job and talent to accelerate the execution of their long term strategic plan.
Speaker Change: <unk> continues to perform well and is delivering year over year revenue growth supported by accelerating demand in the staffing industry as well as higher levels of profitability.
Speaker Change: Collecting their success and streamlining the operations.
Speaker Change: The deal structure for the job and talent investment providing upside to lenders based on improved value creation and performance, which contributed to the meaningful markup this quarter.
Speaker Change: Regarding auto alert after nearly a decade as a lender we assume control of the company in March of 2023 is part of our restructuring.
Speaker Change: Since then auto alert has shown consistent financial performance and recently reported its second consecutive year of earnings growth, which contributed to write up its value this quarter.
Speaker Change: Now turning to our dividend in.
Speaker Change: In line with our revised dividend policy, our board declared a second quarter dividend of 25.
Speaker Change: And a special dividend of <unk> <unk> per share.
Speaker Change: Both are payable on June 32025 to shareholders of record on June 16th 2025.
Speaker Change: We appreciate the continued support of our shareholders as we reposition our portfolio to deliver consistent attractive returns.
Speaker Change: In addition to operating with our long standing shareholder friendly fee structure waiving, one third of our base management fee through September 32025, we repurchased 3150 shares of TCP stock this quarter and an additional 39500 shares after quarter.
Speaker Change: And.
Speaker Change: Now I'll turn the call over to Jason to provide more detail on our portfolio along with our investment activity during the quarter.
Jason: Thanks Bill.
Jason: Start with an overview of our portfolio, which had a fair market value of approximately $1 8 billion at the end of the quarter invested across 146 companies and over 20 industry sectors.
Jason: Our average investment size was granular at $12 1 million <unk>, 7% of the portfolio.
Jason: 90% of the portfolio was invested in senior secured debt and 94% of that amount was floating rate.
Jason: Investment income was distributed broadly across our diverse portfolio with more than 74% of our portfolio companies each contributing less than 1% of the total.
Jason: At quarter end, the weighted average annual effective yield of our portfolio was 12, 2% compared to 12, 4% last quarter.
Jason: New investments had a weighted average yield of 11, 4%, although as we exited at a weighted average yield of 11, 2%.
Jason: These yields reflect the exit of four investments on nonaccrual that did not contribute to current yield.
Excluding these four exits the annual effective yield on deals exited in the period was 11, 9%.
Jason: Moving on to investment activity.
Jason: Deployed $66 million of capital during the quarter.
Jason: Who knew and nine existing portfolio companies.
Jason: Repeat borrowers remain an important source of originations and existing portfolio companies accounted for 89% of our first quarter investments.
Jason: 100% of new investments were in first lien loans, which comprised 82, 5% of our total portfolio at quarter end.
Jason: Our largest new investment this quarter.
Jason: $6 $7 million first lien term loan and revolver and adverse retail demonstrates our focus on investing in first lien loans to high quality middle market companies.
Jason: As a market leader in software that helps retailers combat returns fraud and employee theft.
Jason: This sector is positioned for growth due to several factors, including increased cyber crime and the shift towards digital payments.
Jason: With long term contracts with over 60 of the top 100 U S. Retailers <unk> has an attractive high margin business model with recurring revenue and strong free cash flow generation.
Jason: In an environment of slowing consumer spending this type of software is essential to helping retailers protect profit margins and reduce financial losses.
Jason: As we evaluate new investment opportunities, we remain focused on the core pillars of our strategy Phil outlined last quarter.
Jason: These include targeting core middle market companies.
Jason: Painting, a well diversified portfolio.
Jason: <unk> first lien loans and leveraging the extensive resources of the Blackrock platform.
Jason: We are taking a disciplined approach to new investments and continue to pass on opportunities that aren't aligned with our strategy.
Eric Wolfe: Now I'll turn the call over to Eric.
Eric Wolfe: We'll discuss our financial results, along with our capital and liquidity position.
Jason: Thank you Jason.
Speaker Change: Let me begin with our financial results for the quarter.
Speaker Change: As detailed in our earnings press release.
Speaker Change: Adjusted net investment income excludes the amortization of the purchase accounting discount.
Speaker Change: We've told them from our merger with <unk>.
Speaker Change: And it's calculated in accordance with GAAP.
Speaker Change: A full reconciliation of adjusted net investment income to GAAP net investment income as.
Speaker Change: As well as other non-GAAP financial metrics.
Speaker Change: Included in our earnings press release and 10-Q.
Speaker Change: As Phil noted adjusted net investment income was 36 per share.
Speaker Change: And gross investment income was <unk> 66 per share in the first quarter.
Speaker Change: This amount included recurring cash interest of 47.
Speaker Change: Nonrecurring income of <unk>.
Speaker Change: Recurring discount and fee amortization of <unk>.
Speaker Change: Pik income of <unk>.
Speaker Change: And dividend income of <unk> <unk> per share.
Speaker Change: Pik interest income for the quarter was 11, 6% of total investment income.
Speaker Change: Operating expenses for the first quarter were 28 per share.
Speaker Change: Including <unk> <unk> per share of interest and other debt expenses.
Speaker Change: As of March 31, 2025.
Speaker Change: Our cumulative total return did not exceed the total return hurdle.
Speaker Change: And as a result, no incentive compensation was accrued for the first quarter.
Speaker Change: Additionally, as Phil mentioned, our advisor has agreed to waive one third of our base management fee for three quarters beginning on January one 2025.
Speaker Change: Ending on September 32025.
Speaker Change: Net realized losses for the quarter were approximately $41 million or <unk> 48 per share.
Speaker Change: Driven by the disposition of our investment and securities.
Speaker Change: Mcafee CIBC and Avanti.
Speaker Change: These losses were substantially already reflected in our net asset value at December 31, 2024.
Speaker Change: Net unrealized gains in the first quarter totaled $30 million or <unk> 35 per share.
Speaker Change: Primarily reflecting the reversal of previous unrealized losses on our investments and securities.
Speaker Change: Mcafee CIBC <unk>.
Speaker Change: As well as unrealized markups on Java and talent in at all or.
Speaker Change: The net increase in net assets for the quarter was $21 million or 25 per share.
Speaker Change: As of March 31, a portfolio companies were on nonaccrual status.
Speaker Change: Representing four 4% of the portfolio at fair value and.
Speaker Change: And 12, 6% at cost.
Speaker Change: Down from five 6% and 14, 4% respectively at the end of 2024.
Speaker Change: As previously noted.
Speaker Change: Solta progress made subsequent to quarter end, our pro forma non accruals level is now four 1% at fair value and 11, 8% at cost.
Speaker Change: As Phil noted, we are working closely with our borrowers and their creditors and sponsors to resolve these issues with the best possible outcome to our shareholders.
Speaker Change: The remainder of our portfolio is performing well.
Speaker Change: Turning to our liquidity.
Speaker Change: Our balance sheet positioning is solid.
Speaker Change: And our total liquidity increased to $629 million at quarter end.
Speaker Change: With $530 million of available leverage and $99 million of cash.
Speaker Change: Unfunded loan commitments to portfolio companies at quarter end.
Speaker Change: 8% of our $1 $8 billion investment portfolio.
Speaker Change: Or approximately $135 million.
Speaker Change: Only $43 million of revolver commitment.
Speaker Change: Net leverage at the end of the quarter was $1 one three times.
Speaker Change: Which is well within our target range of <unk> nine to one two times.
Speaker Change: We have several financing options to fund new investments.
Speaker Change: Including our diverse and flexible leverage program.
Speaker Change: Which has three low cost credit facilities.
Speaker Change: On the secured note issuances.
Speaker Change: SBA program.
Speaker Change: The weighted average interest rate on debt outstanding at quarter end was five 2%.
Speaker Change: Looking ahead, we are focused on plans to refinance our next major debt maturity in 2026.
Speaker Change: Our goal is to have the best possible options to refinance the 2026 debt maturity.
Speaker Change: As we continue to improve the credit quality of our portfolio, we expect to have access to attractively priced capital.
Speaker Change: On an ongoing basis, we are working with our lenders to expand our current credit facility.
Phil: Now I'll turn the call back over to Phil.
Phil: Thanks, Eric.
Phil: I'll now provide some market commentary as you know in the current volatile market environment. Many companies are now operating under entirely different conditions compared to a year ago.
Phil: Access to capital has tightened enhancing costs are higher and global trade disruptions are impacting supply chains.
Phil: After carefully reviewing our portfolio, we believe the immediate and direct impact from potential tariffs will be relatively limited and that it will take some time to fully quantify the downstream effects.
Phil: We estimate that only a mid single digit percentage of our portfolio at fair market value will be directly impacted by tariffs.
Phil: Includes the Amazon Aggregators and others in the consumer retail semiconductor and energy sectors.
Phil: While tariff impacts will vary by industry, we believe our focus on U S based operators provide some insulation from supply chain disruption.
Phil: Our portfolio has historically been weighted towards services based companies, which currently comprise the vast majority of the portfolio.
Phil: These businesses are typically asset light and less reliant on global supply chain disruptions, reducing their exposure to trade related pressures.
Phil: Turning to the demand side.
Phil: Although the expected lift in M&A activity has not materialized, we continued to see strong interest from borrowers and referral sources.
Phil: Correct loans in the core middle market.
Phil: With over 200000 companies generating more than 10 trillion in annual revenue in the middle market is the fastest growing sector of the economy.
Phil: We are seeing plenty of new opportunities from companies that are well positioned to grow even in this current environment.
Phil: These companies need growth capital to take their business. The next phase by investing in organic growth initiatives refinancing existing debt or making strategic tuck in acquisitions.
Phil: In addition, incumbency has always been a strong competitive advantage for <unk> and in the past 12 months over half of our new originations came from existing portfolio companies.
Phil: We're finding opportunities within our portfolio, where our deep relationships and industry experience mitigate investment risk, especially in a volatile environment.
Phil: Having invested through multiple cycles, we know that some of the best opportunities can often be found and periods of uncertainty.
Phil: We are well positioned to selectively deploy capital, where we see attractive risk and return.
Phil: We've been in the direct lending business for many years and have seen through prior periods that middle market growth companies are resilient and having demonstrated ability to adapt to changing market conditions.
Phil: With less competition in the broadly syndicated market. This segment of the market has also historically delivered strong risk adjusted returns.
Phil: Against this backdrop, we are focused on three main priorities first we are working hard to resolve the remaining challenged the positions within our portfolio.
Phil: Second we are keeping a close eye on all of our portfolio companies.
Phil: In close contact with their management teams to assess potential impacts of the current environment on their businesses.
Phil: Our direct relationships have many benefits.
Phil: They help us proactively monitor performance resolved emerging issues and identify follow on financing opportunities.
Phil: Third we are maintaining a disciplined approach to originating and underwriting loans. It aligned with our investment strategy. Our goal is to position our portfolio to perform well in all market environments, including a potential downturn.
Phil: Taken together, we believe execution of these priorities will position <unk> to navigate this period of heightened uncertainty as we deliver the best possible risk adjusted returns to our shareholders.
Phil: I'll now pass the call back to the operator, so we can open the call for Q&A.
Phil: Thank you we will now begin the question and answer session.
Speaker Change: As a reminder, if you would like to ask a question today. Please do so now by pressing star followed by the number one on your telephone keypad.
Speaker Change: Did you change your mind or you feel like your question has already been answered you can press star followed by Jay with Joe Yourself from Nicky.
Speaker Change: Our first question today comes from Christopher Nolan with Ladenburg Thalmann.
Speaker Change: Please go ahead.
Christopher Nolan: Hey, guys first of all congratulations on the quarter in terms of stabilizing the performance.
Christopher Nolan: Secondly on the share repurchases.
Christopher Nolan: So there was a $50 million.
Christopher Nolan: Reauthorization.
Christopher Nolan: And.
Christopher Nolan: Just given where the stock prices trading and everything else.
Christopher Nolan: What's the thoughts in terms of.
Christopher Nolan: The trajectory of repurchases going forward.
Christopher Nolan: Yes.
Christopher Nolan: Chris.
Christopher Nolan: We as you know we've done historically repurchases when we believe them to be accretive and meaningfully accretive.
Christopher Nolan:
Christopher Nolan: We did a little bit in Q1, we did some more post Q1 as Phil noted.
Christopher Nolan: Certainly we've been trading at levels that that can make it accretive.
Christopher Nolan: Our thought is to continue to monitor their trading price.
Christopher Nolan: Really to continue to do them.
Christopher Nolan: As they are accretive.
Yes.
Christopher Nolan: The stock is reacting well this morning.
But certainly we'll continue to.
Christopher Nolan: If you look at where we think it's accretive to repurchase shares.
Christopher Nolan: Okay and then.
Christopher Nolan: Given the commentary around the middle market companies.
Christopher Nolan: Do most of your portfolio companies have sponsors or are they sort of don't know.
Christopher Nolan: Sponsors.
Chris: Yeah. Thanks, Thanks, Chris.
Christopher Nolan: The vast majority of our companies do have.
Christopher Nolan: Sponsors or I would say institutional ownership in there.
Christopher Nolan: There are many.
Christopher Nolan: Many of our borrowers have institutional ownership, but not control.
Christopher Nolan: So oftentimes decision making.
Christopher Nolan: Our negotiations on terms of the deals are structured.
Christopher Nolan: With with management.
Christopher Nolan: Management teams founders entrepreneurs businesses.
Christopher Nolan: But I think.
Christopher Nolan: Majority are sponsor backed.
Christopher Nolan: And in this environment what is the appetite of those sponsors are kicking in more equity.
Christopher Nolan: When you do a financing.
Christopher Nolan: Yes, that's a great question, so clearly we've been in environment.
Christopher Nolan: Where.
Christopher Nolan: Well well into 2025, so if you think about the right rate rise environment, we're probably in year three so.
Christopher Nolan: With higher rates and slower growth rate, causing some liquidity issues across.
Christopher Nolan: Across the market.
Christopher Nolan: Sponsors have.
Christopher Nolan: Have had several years of looking to support their companies continuing to.
Christopher Nolan: She used capital when necessary, providing the operational expertise.
Christopher Nolan: They may bring to the table.
Christopher Nolan: But.
Christopher Nolan: Three years in now many of these.
Christopher Nolan: Sponsors if they're not seeing their equity their equity value continue to.
Christopher Nolan: The sustainable or the equity option. There then.
Christopher Nolan: They may be less supportive.
Christopher Nolan: We've seen a mix clearly most of our companies are performing.
Christopher Nolan: Well or if there.
Christopher Nolan: If they've had some declining performance it hasn't been to a point where the values.
Christopher Nolan: Values out of the money. So we have seen continued support and when negotiating with them.
Christopher Nolan: A couple here and there in our portfolio.
Christopher Nolan: Where where the sponsors putting in additional equity and worth discussing.
Christopher Nolan: Ways to help accommodate.
Christopher Nolan: Accommodate that.
Christopher Nolan: And then to the extent that we don't get the right support from the equity then we're obviously very much comfortable with.
Christopher Nolan: Enforcing our rights and managing these companies on a post restructuring basis, which I think you've seen us do over the past two decades of running this business.
Christopher Nolan: Okay. Thank you.
Chris: Thank you Chris.
Speaker Change: Thank you. Our next question comes from Robert Dodd with Raymond James.
Speaker Change: Please go ahead Robert.
Robert Dodd: Hi, guys.
Speaker Change: Yeah.
Speaker Change: Chris Congrats on resolving and exiting some of these things on the Aggregators.
Speaker Change: I appreciate you made some comments I mean, I think it's still.
Speaker Change: Back to you about it and that is still more than half of the fair value of the non accruals.
Speaker Change: As in the aggregate the space.
Speaker Change: There's.
Speaker Change: A lot of.
Speaker Change: Non income producing.
Speaker Change: Let alone the cost basis, potentially I mean could you give us any any more color on like how long you would think.
Speaker Change: <unk>.
Speaker Change: You're completing restructuring or repositioning those businesses is going to take.
Speaker Change: From a from a.
Speaker Change: I'm an earnings drag perspective, it's obviously a.
Speaker Change: If that vision recovery to be made that there isn't earnings drag and it's dragging on your.
Speaker Change: You have capacity to generate.
Speaker Change: So can you give us any thoughts on the timeline on those obviously, it's tricky, but anything you can say.
Robert Dodd: Yes, Thanks Robert.
Speaker Change: That's a topic that we are keenly focused on as well.
Robert Dodd: Obviously.
Robert Dodd: We were looking at our non accruals very closely working very hard.
Robert Dodd: And trying to work through those names and you're right the aggregators or a large percentage of those.
Robert Dodd: And.
Robert Dodd: We think that we should be through.
Robert Dodd: The restructurings.
Robert Dodd: Probably the next few quarters.
Robert Dodd: At the at the back end.
Robert Dodd: It could be sooner I think we're making a lot of progress.
Robert Dodd: But that being said we are seeing some some some good signs of improvement.
About.
Robert Dodd: The ability to have performing performing debt in there.
Robert Dodd: <unk> is certainly one that that's.
Robert Dodd: Well its way that's not on non accrual.
Robert Dodd: But that's one I just bring up because it is one of the aggregators.
Robert Dodd: The other one seller X.
Robert Dodd: They have some real promising brands in that business.
Robert Dodd: That continued to grow meaningfully year over year. So we're really excited about about the prospects there in terms of.
Robert Dodd: The ability to kind of generate sustained income.
Robert Dodd: Got it.
Robert Dodd: Both <unk> and razor are.
Robert Dodd: We're still in the restructuring process and.
Robert Dodd: Arent necessarily.
Robert Dodd: Sure.
Robert Dodd: Easy to manage given that multiple stakeholders.
Robert Dodd: Up and down the cap stack. So we're working on those but we expect.
Robert Dodd: To get those done in the next few quarters and would it be optimistic then perhaps.
Robert Dodd: One of them sooner.
Robert Dodd: Got it got it.
Speaker Change: Just to that point I mean on the repositioning of the portfolio et cetera unit going forward.
Speaker Change: To your point like some of these these aggregate is that.
Speaker Change: It will draw a club deal to a lot of other people involved.
Speaker Change: Which adds.
Speaker Change: <unk> if it does reach the point that our restructuring is required.
Speaker Change: So is there any change it always does.
Speaker Change: Likely to be any change in kind of.
Speaker Change: The types of deals you're going to do on a go forward basis in terms of like how many are the.
Speaker Change: Lenders youre willing to be in a group with it I mean, you said you didn't want to do the.
Speaker Change: The broadly syndicated second liens unless you had.
Speaker Change: Strongly influence I think was you would and something to that effect. I mean is that is that could it be more true across the portfolio was well whether there'll be less.
Speaker Change: Less of these broad group deals and more more.
Speaker Change: You're the dominant lender kind of deal is what are your thoughts there.
Speaker Change: Yes.
Speaker Change: Robert.
Speaker Change: We are definitely taking that approach going forward, we feel that some of the <unk>.
Speaker Change: Some of the errors of the past.
Speaker Change: <unk> had been related to situations, where we're not able to exercise our influence.
Speaker Change: The.
Speaker Change: The bucket of broadened second lien loans that.
Speaker Change: Were put on in 2021, that's clearly an area that we've seen.
Speaker Change: The shortcomings of not being able to exercise the experience the skill set the capabilities of our team in these situations.
Speaker Change: And and that's definitely one of the stated areas of focus for us going forward by the way.
Speaker Change: Whether thats on it.
Speaker Change: Whether it was we looked at the second lien or or even a first lien.
Speaker Change: Got it I appreciate it thank you.
Speaker Change: Thank you Robert.
Speaker Change: As a reminder, if you would like to ask a question today. Please do so now by pressing star followed by the number one on your telephone keypad.
Speaker Change: The next question comes from Paul Johnson with <unk>.
Speaker Change: Please go ahead Paul.
Speaker Change: Yeah.
Speaker Change: Hey, good afternoon, thanks for taking my questions.
Speaker Change: I was wondering can you just explain what happened.
Speaker Change: Here with the job and talent.
Speaker Change: What drove that appears to be there.
Speaker Change: Two different things going on with the investment this quarter I'm not sure. If you made a new investment in the company.
Speaker Change: Or exactly what's going on there that would be helpful. Thanks.
Speaker Change: Yeah, Thanks, Paul so job and talent. So jamba talent is one of the.
Speaker Change: The tech enabled.
Speaker Change: Staffing agencies that we hadn't had in our portfolio for some time.
Job in town and performing.
Speaker Change: Seen year over year growth on both revenue and profitability.
Speaker Change: And this past quarter, we did have an opportunity to provide growth capital. There. So one I think the markup came from improved performance.
Speaker Change: Continued to continued improved performance second is from the economics that we benefited from this incremental growth capital.
Speaker Change: The company is continuing to invest in growth.
Speaker Change: And.
Speaker Change: As part of that there is an opportunity.
Speaker Change: As an incumbent lender lender to structure really nice preferred.
Speaker Change: Net investment in the business.
Speaker Change: Included really enhanced economics that accrue to our benefit here.
Speaker Change: She's amazing.
Speaker Change: Are you able to share any of the.
Speaker Change: The economics.
Speaker Change: How are your.
Speaker Change: How you or what sort of income you are receiving or.
Speaker Change: What what you guys hold there.
Speaker Change: Yes, Paul we're really not.
Speaker Change: We haven't done so in the past, but we're fully comprehend shallow reasons not able to share the details.
Speaker Change: Okay, Yes.
Speaker Change: Thanks for that and then I will but I'm sorry, yes.
Speaker Change: I will add that.
Speaker Change: It's confidential with respect to.
Speaker Change: The company.
Speaker Change: And the terms of the deal, but I think it was.
Speaker Change: It was a very attractive situation for us is one where.
Speaker Change: Where a lot of the existing stakeholders in the business also stepped up I think we were we.
Speaker Change: We're probably about closer to 50% of the deal.
Speaker Change: Because a lot of these business stakeholders want to come in as well on this piece of paper.
Okay got it thanks that's helpful.
Speaker Change: And then the last one I just had.
Speaker Change: I think I'd ask a few quarters ago, but I'm curious are you pursuing any new <unk> licenses or is there any plans to do so this year.
Speaker Change: We do have plans to do so we have a small tail amount.
Speaker Change: Still available under our current license.
Speaker Change: But we are.
Speaker Change: Underway in the process of obtaining a second license.
Speaker Change: Which is by the way the Max that you can get your only two to get to.
Speaker Change: Right got it.
Speaker Change: And do you have any.
Speaker Change: Thoughts on that process is that.
Speaker Change: Is that.
Speaker Change: Window is still open or any of the ongoing.
Speaker Change: Administration changes is that.
Speaker Change: Disrupted kind of the expected timeline or anything for getting a license approved.
Speaker Change: Yes, so far from what we can tell it has not impacted.
Speaker Change: Neither the availability or the timing.
Speaker Change: But it does take a little bit of time.
Speaker Change: It always has.
Speaker Change: But so far there's been no real changes to the process.
Speaker Change: Okay. Thank you very much that's all for me.
Speaker Change: Thanks, Paul.
Speaker Change: As a further reminder, if you would like to ask a question. Please do so now by pressing star followed by the number one on your kind of thank you Pat.
At this time, we have no further questions registered and so on.
Speaker Change: Turn the call back over to Phil Tseng for closing remarks.
Speaker Change: Thank you.
Phil Tseng: In closing I want to thank our entire team at Blackrock TCP for all of their hard work and our investors and analysts for your continued trust and support.
Speaker Change: Please reach out to us with any questions.
Speaker Change: Thank you everyone for joining us today. This concludes our call and you may now disconnect your lines.
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