67 WALL STREET, New York - December 17, 2013 - The Wall Street Transcript has just published its Business Development Companies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: BDC Risk/Reward Profile - Business Development Companies Historical Overview - Yield Compression Issues - Internally and Externally Managed BDCs - BDC Dividend Growth
Companies include: Triangle Capital Corporation (TCAP) and many more.
In the following excerpt from the Business Development Companies Report, the CEO and Chairman of Triangle Capital Corporation (TCAP) discusses company strategy and the outlook for this vital industry:
TWST: Can you talk about the Triangle Capital brand name for a moment and whether brand is an important and a competitive factor these days?
Mr. Tucker: Financing activity at the smaller end of the market tends to be much more relationship-oriented than is true for larger companies. So I think brand name is important. Specifically it is important that we have good, strong relationships with private equity groups.
TWST: On your recent earnings call, you announced very strong results, generating net investment income of about $0.61 per share, equity gains approaching $1 million amongst other highlights. What has been the driver of this success, and what particular items are you focused on for improvement?
Mr. Tucker: I think our strong Q3 results very much reflected our basic operating strategy. That strategy is to invest in subordinated debt with some equity upside potential. The equity gains are important offsets to any losses we might have in our debt investments on a cumulative basis. The results reflect solid underwriting, the fact that we invest with good private equity groups, and that we have some equity upside in those investments.
TWST: What is your analysis of the trends in the mezzanine finance market? What will be important over the next 12, 24 months? What would be the drivers of growth?
Mr. Tucker: Looking back for the last 12 months, on a relative basis we have experienced more repayments in 2013 than would normally be the case. That is a reflection of the high quality of our portfolio. The fact that these companies were able to be sold or refinance reflects their credit quality.
Also, another implication is that we have to redeploy that money, and in the past few quarters repayments have exceeded new investments. What we're experiencing right now is a slowing in repayments and an acceleration of the deployment of capital in new investments. We expect that to continue on into 2014, with some growth in the net size of the portfolio.
TWST: Could you share with us what industries are attractive to Triangle these days?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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