BlackRock has cut the net asset value of its listed private debt vehicle BlackRock TCP Capital Corp by around 19% after a series of underperforming loans weighed on results, highlighting continued pressure across the private credit market, according to a report by Bloomberg.
The business development company said it expects NAV per share to fall to between $7.05 and $7.09 for the quarter ended 31 December, compared with $8.71 at the end of September. BlackRock also waived one-third of the fund’s management fee for its last quarter.
Performance has been hit by exposure to e-commerce aggregators and home improvement group Renovo Home Partners, which has filed for bankruptcy and plans to liquidate. BDCs, which hold portfolios of private credit loans but trade publicly, have faced mounting investor concerns over returns, underwriting standards, and regulatory scrutiny.
BlackRock TCP Capital had a market capitalisation of around $497m at Friday’s close. The fund forms part of BlackRock’s private credit platform following the acquisition of Tennenbaum Capital Partners in 2018, as the asset manager continues to expand its private markets presence.
