BlackRock is exploring potential buyers for the remaining $671m loan portfolio held by TCP Capital Corp, as it weighs options for restructuring the troubled private credit vehicle, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as saying that advisers at Keefe, Bruyette & Woods have approached several rival asset managers about acquiring the loans, including Ares Management. The discussions are at an early stage though, and no transaction has been agreed.
Any sale could take place below the portfolio’s net asset value, given that TCP Capital currently trades at a discount to the value of its underlying assets.
BlackRock has yet to make a final decision on whether to sell the portfolio. The firm has previously said it is considering several alternatives for TCP Capital, including reinvesting in the existing assets, returning capital to shareholders or combining the vehicle with another entity.
The latest discussions follow TCP Capital’s sale earlier this month of $523m of loans to a vehicle backed by Pantheon, the private markets secondaries specialist. The transaction formed part of a broader review of strategic alternatives after the fund appointed KBW to advise on its options.
TCP Capital’s remaining assets had a fair value of $671m, according to a recent regulatory filing.
The publicly traded business development company has faced significant pressure this year after markdowns on underperforming loans reduced the value of its portfolio. The fund has also attracted regulatory scrutiny over its asset valuations.
