BlackRock explores sale of $671m TCP private credit loan portfolio
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.
BlackRock is considering the possibility of selling the $671 million loan portfolio remaining with TCP Capital Corp, as reported by Bloomberg. Sources familiar with the matter indicate that Keefe, Bruyette & Woods has been discussing potential acquisitions of the loans with several other asset managers, among them Ares Management.
However, these talks are in their early stages and no deal has been reached yet. Given TCP Capital's current status as a discount to the value of its underlying assets, any sale could occur at a price lower than the portfolio's net asset value. Despite this, BlackRock has not yet made a final decision on whether to sell the portfolio.
The company has previously outlined several alternative options for TCP Capital, such as reinvesting in the existing assets, returning capital to shareholders, or merging the vehicle with another entity. The recent sale of $523 million in loans to a vehicle managed by Pantheon marks a move within a larger review process following the appointment of Keefe, Bruyette & Woods to advise on TCP Capital's strategic alternatives.
As of a recent filing, TCP Capital's remaining assets were valued at $671 million. The business development company has faced considerable challenges this year due to markdowns on underperforming loans, which have significantly decreased the value of its portfolio. Additionally, BlackRock has come under regulatory scrutiny for its asset valuations.
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