UPDATE: Stifel Nicolaus Initiates TCP Capital Corp to Buy; Attractive Structure

Stifel Nicolaus initiates a Buy rating with a $16 price target on TCP Capital Corp

as it sees the significant middle-market lender having a shareholder-friendly structure. Stifel Nicolaus says, "TCPC has a very shareholder-friendly management structure that aligns performance with pay. TCPC has a 1.5% base management fee on assets, and the quarterly incentive fee (waived throughout 2012) includes a high-water mark so all realized and unrealized losses in the portfolio go into the quarterly fee calculation. This means if the manager does not generate an annual return of 8% including net write-downs in the portfolio, they do not get paid." TCPC closed at $14.58 on Friday.