TPG Twin Brook Capital Income Fund Files Reg FD: Portfolio Update, Strong YTD Returns

What Happened
TPG Twin Brook Capital Income Fund (TCAP) filed an 8-K (Item 7.01, Regulation FD disclosure) on Sept. 16, 2026 providing detailed portfolio commentary as of June 30, 2026. TCAP reported a $4.8 billion portfolio and continued strong performance: a 4.9% year-to-date total return for Class I shares and a 9.9% trailing‑12‑month total return, both outpacing leveraged loans and broader fixed‑income benchmarks. The filing emphasizes TCAP’s defensive, lower‑middle‑market first‑lien senior secured lending strategy and includes market commentary on mid‑market direct lending trends.

Key Details

• Portfolio size: $4.8 billion (as of June 30, 2026).
• Performance: Class I total return 4.9% YTD (outperformed Morningstar LSTA US Leveraged Loan Index by 240 bps and Bloomberg US Aggregate by 440 bps); trailing 12‑month Class I return 9.9% (outperformed leveraged loans by 420 bps).
• Portfolio composition: 100% first‑lien senior secured, ~100% floating‑rate, 100% private (Level 3) investments; 100% sponsored by private equity; TPG Twin Brook is sole/lead lender on ~100% of deals.
• Credit metrics & distributions: Annualized distribution rate (Class I) 10.0%; payment‑in‑kind interest 1.3%; non‑accruals 0.2% (at cost); weighted average spread ~540 bps; weighted average yield on new originations 8.7%.
• Activity: TCAP committed $563 million during the quarter, including $262 million to new portfolio companies; average issuer EBITDA at origination $18.1M; debt‑to‑equity ratio 0.8x.

Why It Matters
The filing highlights TCAP’s focus on lower‑middle‑market, first‑lien senior secured loans and shows relatively low credit stress so far (low non‑accrual and PIK rates) while delivering above‑benchmark returns—details retail investors may use when evaluating TCAP’s income profile and risk posture. Important investor notes from the filing: distributions are not guaranteed and may be funded from non‑operating sources, performance is historical and unaudited, and forward‑looking statements in the report are subject to the risks described in TCAP’s prospectus and SEC filings.