BlackRock is exploring a potential sale of its loan portfolio owned by TCP Capital Corp. (NASDAQ: TCPC) in another step towards reshaping the private credit vehicle after a difficult stretch.
The asset manager has brought in Keefe, Bruyette & Woods to gauge interest from potential buyers for the portfolio, which is valued at approximately $671 million, sources familiar with the situation told Bloomberg.
Discussions remain preliminary and are subject to change, although it is noted that Ares Management is among some of the firms that have been approached. TCP has been considering a range of options, including returning the capital to its shareholders, merging with another entity, or reinvesting in the portfolio, Bloomberg added.
Earlier this month, it was announced that TCP Capital Corp. was selling a $523 million portfolio of private credit investments to shore up its balance sheet, reduce leverage, and regain flexibility after mounting pressure on its publicly traded lending vehicle. TCPC noted that its remaining assets had a fair market value of $671 million.
TCPC’s restructuring comes as investors increasingly question whether private credit portfolios are prepared for a prolonged period of higher rates, weaker borrowers and slower exits.
