Federal Prosecutors Probe BlackRock TCP Capital Valuation Practices After 19% Cut
Federal prosecutors are scrutinizing valuation practices at BlackRock TCP Capital, a publicly traded business development company tied to BlackRock’s private-credit platform, after the fund surprised investors with a sharp write-down of its loan portfolio earlier this year.
The fund made a rare off-cycle disclosure in January saying it expected to cut asset values by 19%. Net asset value fell from $8.71 a share at the end of the third quarter to $7.07 at the end of the fourth quarter, and the shares dropped 13% on Jan. 26. Investors later filed class-action lawsuits alleging the fund made false statements and failed to properly value loans. BlackRock declined to comment, and probes can end without charges.
From the sources (6 posts)
@financialjuiceBlackRock private credit fund's valuations being probed by the DOJ $BLK
@businessFederal prosecutors are scrutinizing valuation practices at a BlackRock private credit fund
@wallstengineBLACKROCK PRIVATE CREDIT FUND VALUATIONS PROBED BY DOJ Bloomberg reports federal prosecutors are scrutinizing valuation practices at BlackRock $BLK TCP Capital. TCPC is a publicly traded business development company tied to BlackRock’s pr
@junkbondinvestHere's the fact pattern (it's bad): > A BDC marks a $25M loan at par in Q3. > Three months later, the same loan is worthless. > Six weeks after that, the BDC announces a 19% NAV cut in an off-cycle disclosure. > The fund and the CEO get su
@exec_sumFederal prosecutors are investigating valuation practices at a BlackRock private credit fund
@wsjmarketsFederal prosecutors are probing a BlackRock private-credit fund that surprised investors with a sharp write-down of its loan portfolio earlier this year, according to people familiar with the matter