BlackRock is in discussions to restructure a private credit loan to Indian e-commerce brand aggregator Goat Brand Labs, highlighting the challenges facing the asset manager as it expands its private credit business across Asia, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that Goat Brand Labs has proposed extending the maturity of a $17m loan to September 2028 from its original December 2027 maturity date. The company is also seeking relief from a 6% annual cash coupon attached to the financing.
The loan, which was provided by BlackRock’s APCO Fund II in July 2024, is structured with payment-in-kind (PIK) features and is expected to deliver an internal rate of return of around 16%, according to documents seen by Bloomberg.
The proposed restructuring follows liquidity pressures at the Bengaluru-based company, which has experienced slower-than-expected monetisation of its portfolio of consumer brands amid subdued mergers and acquisitions activity. Documents indicate the company missed a monetisation milestone in March, leading to a delayed interest payment under the terms of the financing.
Despite the near-term cash flow pressures, the company’s core operating performance remains stable, according to the documents.
The discussions come as BlackRock continues to build its private credit franchise in Asia against a more challenging operating backdrop. The firm has recently faced a number of setbacks in the region, including the departure of its head of private credit for Australasia, efforts to recover capital from a separate loan in China and a fundraising process that fell short of its target.
The world’s largest asset manager has also encountered challenges within its US private credit business, where a listed private credit fund has reduced its net asset value following a series of underperforming investments earlier this year.
The developments underscore the increasingly complex environment for private credit managers operating across Asia, where slower dealmaking, weaker exit markets and uneven economic conditions are testing borrowers’ ability to refinance or repay debt.
