Hudson Bay pulls plans for dedicated private credit platform as BlackRock hires depart
Hudson Bay Capital Management has abandoned plans to establish a dedicated private credit business after two senior executives recruited from BlackRock left the $20bn alternative investment firm, according to a report b Bloomberg.
Hudson Bay Capital Management has abandoned plans for a dedicated private credit platform following the departure of two senior executives previously hired from BlackRock, according to Bloomberg. The firm, with a $20bn alternative investment portfolio, had allocated about $1bn in seed capital to the team led by Raj Vig. The executives, Raj Vig and Tim Morris, had joined Hudson Bay from BlackRock’s private credit operation, but have now left the firm.
Despite the exit, Hudson Bay executives have assured the remaining team that the company intends to continue investing in credit, including opportunities within the $1.8tn private credit market. The management shift follows scrutiny on BlackRock’s former TCP Capital operation over valuation practices of some of its loans, with the fund reducing the value of several investments and facing regulatory investigations.
Morris, who previously served as Americas chief operating officer for BlackRock’s global credit business, denied any impact from valuation issues during his tenure. BlackRock’s TCP Capital has since sold assets and is exploring strategic alternatives, including returning capital to shareholders or merging with another entity. Hudson Bay declined to comment on the matter, while Raj Vig did not provide a statement.
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