MW Why a private-credit fund tied to BlackRock is getting hammered

By Steve Goldstein

A BlackRock fund invested in private credit was under pressure on Monday.

A private credit fund tied to the world's largest asset manager was getting hit hard in premarket trade after revealing its net asset value will be marked down by nearly one-fifth.

Shares in BlackRock TCP Capital Corp. $(TCPC)$, which invests in the private credits of "middle-market" companies worth between $100 million and $1.5 billion, slumped 8% after a late Friday filing to the Securities and Exchange Commission in which it revealed its net asset value for the fourth quarter will fall 19%.

That decline, it said, "is primarily driven by issuer-specific developments during the quarter," naming the particular issues to blame as educational software firm Edmentum, Amazon aggregators Razor and SellerX, residential contractor HomeRenew, infrastructure services provider Hylan and mobile advertising firm InMobi.

The fund said it'll waive one-third of its base management fee for the quarter.

The private credit industry came under scrutiny last year after well-flagged bankruptcies of auto supplier First Brands and subprime auto lender Tricolor. That said, the most recent reporting season for both Wall Street and regional banks didn't reveal any notable loan-loss provisions.

Shares of BlackRock $(BLK)$ edged 0.2% lower in premarket trade.

-Steve Goldstein

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January 26, 2026 06:19 ET (11:19 GMT)

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