BlackRock Cuts Valuation of Private Credit Fund
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TCPC?
Source: Newsfilter
- Net Asset Value Decline: BlackRock TCP Capital Corp's net asset value per share fell approximately 5% to $6.72 in Q1, reflecting increased investor scrutiny of private credit funds amid AI threats to software business models.
- Improved Non-Accrual Rate: The fund's non-accrual rate decreased from 4% to 2.8%, indicating some portfolio improvement, although it still faced significant challenges with net realized losses of $32.7 million, highlighting ongoing risks.
- Investment Loss Disclosure: The fund reported $2 million in net unrealized losses primarily due to loans to troubled software firm Pluralsight, underscoring the concentration of risk within a few portfolio companies.
- Share Buyback Program: Since April 1, BlackRock TCP has repurchased over 156,000 shares at a total cost of $600,000, demonstrating the company's confidence in its stock despite the pressures of declining net asset value.
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Analyst Views on TCPC
Wall Street analysts forecast TCPC stock price to rise
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 4.360
Low
5.50
Averages
6.25
High
7.00
Current: 4.360
Low
5.50
Averages
6.25
High
7.00
About TCPC
BlackRock TCP Capital Corp. is an externally managed, closed-end, non-diversified management investment company. The Company's investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. It invests primarily in the debt of middle-market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Such investments may include an equity component, and, to a lesser extent, it may make equity investments directly. It invests in various industries, including automobiles, Internet software and services, software, diversified financial services, diversified consumer services, health care technology, healthcare providers and services, media, construction and engineering, and real estate management and development, among others. Tennenbaum Capital Partners, LLC is the Advisor of the Company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BlackRock Cuts Valuation of Private Credit Fund
- Net Asset Value Decline: BlackRock TCP Capital Corp's net asset value per share fell approximately 5% to $6.72 in Q1, reflecting increased investor scrutiny of private credit funds amid AI threats to software business models.
- Improved Non-Accrual Rate: The fund's non-accrual rate decreased from 4% to 2.8%, indicating some portfolio improvement, although it still faced significant challenges with net realized losses of $32.7 million, highlighting ongoing risks.
- Investment Loss Disclosure: The fund reported $2 million in net unrealized losses primarily due to loans to troubled software firm Pluralsight, underscoring the concentration of risk within a few portfolio companies.
- Share Buyback Program: Since April 1, BlackRock TCP has repurchased over 156,000 shares at a total cost of $600,000, demonstrating the company's confidence in its stock despite the pressures of declining net asset value.
See More
BlackRock TCP Capital Corp. Q1 2026 Earnings Call Insights
- Credit Quality Improvement: BlackRock TCP Capital Corp. reported a decline in nonaccruals to 2.8% in Q1 2026 from 4% in the previous quarter, indicating significant progress in enhancing the credit quality of its investment portfolio, which boosts investor confidence.
- Leverage Reduction: The net leverage ratio decreased to 1.29x at quarter-end, approaching the target range of 0.9 to 1.2x, demonstrating effective balance sheet management that aids in future capital deployment and risk control.
- Stable Investment Income: Total investment income for the first quarter was $42.6 million, or $0.51 per share, despite facing $32.7 million in net realized losses, showcasing the company's resilience in income generation, which supports ongoing dividend payments.
- Dividend and Buyback Plans: The Board declared a second-quarter dividend of $0.17 per share and reapproved a stock repurchase plan of up to $50 million, reflecting the company's confidence in future cash flows and commitment to shareholders.
See More
BlackRock TCP Capital Set to Announce Q1 Earnings
- Earnings Announcement: BlackRock TCP Capital is set to release its Q1 2023 earnings on May 7 before market open, with consensus EPS estimate at $0.20, reflecting a 44.4% year-over-year decline, and revenue estimate at $40.1 million, down 28.3% year-over-year, indicating significant profitability challenges ahead.
- Earnings Performance History: Over the past two years, TCP Capital has only beaten EPS estimates 38% of the time and revenue estimates 25% of the time, highlighting instability in its earnings performance and market caution regarding its future outlook.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS or revenue estimates, with four downward revisions each, suggesting a weakening market confidence in the company's future performance, which may influence investor decisions.
- Portfolio Repositioning Signals: Amid a decline in net asset value, TCP Capital signals a portfolio repositioning with 87.4% of loans being first lien, indicating strategic adjustments in risk management and capital allocation to navigate current market challenges.
See More
Class Action Lawsuits Filed for Multiple Companies
- Class Action Notification: The Law Offices of Frank R. Cruz remind investors of class action lawsuits filed against BlackRock TCP Capital Corp., Oracle Corporation, Paysafe Limited, and Inovio Pharmaceuticals, urging investors to file lead plaintiff motions by the specified deadlines to protect their legal rights.
- BlackRock TCP Lawsuit Details: The lawsuit alleges that from November 2024 to January 2026, BlackRock failed to timely and appropriately value its investments, resulting in overstated net asset value and investor losses, with a lead plaintiff deadline of April 6, 2026.
- Oracle Lawsuit Issues: In the class action from June to December 2025, Oracle is accused of failing to disclose that its AI infrastructure strategy would lead to significant capital expenditure increases without corresponding revenue growth, with investors suffering losses exceeding $50,000, also with a lead plaintiff deadline of April 6, 2026.
- Paysafe and Inovio Lawsuit Overview: Paysafe's lawsuit highlights significant exposure to high-risk clients potentially impacting revenue growth, while Inovio faces challenges in timely FDA submissions due to manufacturing deficiencies, with lead plaintiff deadlines for both set for April 7, 2026.
See More
Class Action Notice for BlackRock TCP Capital Corp. Investors
- Class Action Initiation: Rosen Law Firm reminds investors who purchased BlackRock TCP Capital Corp. securities between November 6, 2024, and January 23, 2026, to apply as lead plaintiffs by April 6, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Allegations Overview: The lawsuit alleges that BlackRock TCP's management failed to timely and appropriately value investments, leading to investors being unaware of overstated net asset values and undisclosed adverse facts, resulting in investor losses.
- Law Firm Background: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and achieved the largest securities class action settlement against a Chinese company in 2017, demonstrating its strong capabilities in this field.
- Investor Action Recommendations: Investors can visit Rosen Law Firm's website or call toll-free for more information, emphasizing the importance of selecting qualified legal counsel to ensure effective representation in the lawsuit and avoid inexperienced intermediaries.
See More
Reminder of Class Action for BlackRock TCP Capital Corp. Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased BlackRock TCP Capital Corp. securities between November 6, 2024, and January 23, 2026, to apply as lead plaintiffs by April 6, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that BlackRock TCP's management failed to timely and appropriately value investments, leading to understated unrealized losses and overstated net asset value, which rendered positive statements about the company's business misleading and lacking a reasonable basis.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its expertise and success in this field.
- Investor Action Advice: Investors can visit Rosen Law Firm's website or call the toll-free number for more information, emphasizing the importance of selecting qualified legal counsel to ensure effective representation in the lawsuit and avoid inexperienced intermediary firms.
See More
BlackRock Cuts Valuation of Private Credit Fund
- Net Asset Value Decline: BlackRock TCP Capital Corp's net asset value per share fell approximately 5% to $6.72 in Q1, reflecting increased investor scrutiny of private credit funds amid AI threats to software business models.
- Improved Non-Accrual Rate: The fund's non-accrual rate decreased from 4% to 2.8%, indicating some portfolio improvement, although it still faced significant challenges with net realized losses of $32.7 million, highlighting ongoing risks.
- Investment Loss Disclosure: The fund reported $2 million in net unrealized losses primarily due to loans to troubled software firm Pluralsight, underscoring the concentration of risk within a few portfolio companies.
- Share Buyback Program: Since April 1, BlackRock TCP has repurchased over 156,000 shares at a total cost of $600,000, demonstrating the company's confidence in its stock despite the pressures of declining net asset value.
See More
BlackRock TCP Capital Corp. Q1 2026 Earnings Call Insights
- Credit Quality Improvement: BlackRock TCP Capital Corp. reported a decline in nonaccruals to 2.8% in Q1 2026 from 4% in the previous quarter, indicating significant progress in enhancing the credit quality of its investment portfolio, which boosts investor confidence.
- Leverage Reduction: The net leverage ratio decreased to 1.29x at quarter-end, approaching the target range of 0.9 to 1.2x, demonstrating effective balance sheet management that aids in future capital deployment and risk control.
- Stable Investment Income: Total investment income for the first quarter was $42.6 million, or $0.51 per share, despite facing $32.7 million in net realized losses, showcasing the company's resilience in income generation, which supports ongoing dividend payments.
- Dividend and Buyback Plans: The Board declared a second-quarter dividend of $0.17 per share and reapproved a stock repurchase plan of up to $50 million, reflecting the company's confidence in future cash flows and commitment to shareholders.
See More
BlackRock TCP Capital Set to Announce Q1 Earnings
- Earnings Announcement: BlackRock TCP Capital is set to release its Q1 2023 earnings on May 7 before market open, with consensus EPS estimate at $0.20, reflecting a 44.4% year-over-year decline, and revenue estimate at $40.1 million, down 28.3% year-over-year, indicating significant profitability challenges ahead.
- Earnings Performance History: Over the past two years, TCP Capital has only beaten EPS estimates 38% of the time and revenue estimates 25% of the time, highlighting instability in its earnings performance and market caution regarding its future outlook.
- Estimate Revision Trends: In the last three months, there have been no upward revisions to EPS or revenue estimates, with four downward revisions each, suggesting a weakening market confidence in the company's future performance, which may influence investor decisions.
- Portfolio Repositioning Signals: Amid a decline in net asset value, TCP Capital signals a portfolio repositioning with 87.4% of loans being first lien, indicating strategic adjustments in risk management and capital allocation to navigate current market challenges.
See More
Class Action Lawsuits Filed for Multiple Companies
- Class Action Notification: The Law Offices of Frank R. Cruz remind investors of class action lawsuits filed against BlackRock TCP Capital Corp., Oracle Corporation, Paysafe Limited, and Inovio Pharmaceuticals, urging investors to file lead plaintiff motions by the specified deadlines to protect their legal rights.
- BlackRock TCP Lawsuit Details: The lawsuit alleges that from November 2024 to January 2026, BlackRock failed to timely and appropriately value its investments, resulting in overstated net asset value and investor losses, with a lead plaintiff deadline of April 6, 2026.
- Oracle Lawsuit Issues: In the class action from June to December 2025, Oracle is accused of failing to disclose that its AI infrastructure strategy would lead to significant capital expenditure increases without corresponding revenue growth, with investors suffering losses exceeding $50,000, also with a lead plaintiff deadline of April 6, 2026.
- Paysafe and Inovio Lawsuit Overview: Paysafe's lawsuit highlights significant exposure to high-risk clients potentially impacting revenue growth, while Inovio faces challenges in timely FDA submissions due to manufacturing deficiencies, with lead plaintiff deadlines for both set for April 7, 2026.
See More
Class Action Notice for BlackRock TCP Capital Corp. Investors
- Class Action Initiation: Rosen Law Firm reminds investors who purchased BlackRock TCP Capital Corp. securities between November 6, 2024, and January 23, 2026, to apply as lead plaintiffs by April 6, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Allegations Overview: The lawsuit alleges that BlackRock TCP's management failed to timely and appropriately value investments, leading to investors being unaware of overstated net asset values and undisclosed adverse facts, resulting in investor losses.
- Law Firm Background: Rosen Law Firm specializes in securities class actions, having recovered over $438 million for investors in 2019 alone, and achieved the largest securities class action settlement against a Chinese company in 2017, demonstrating its strong capabilities in this field.
- Investor Action Recommendations: Investors can visit Rosen Law Firm's website or call toll-free for more information, emphasizing the importance of selecting qualified legal counsel to ensure effective representation in the lawsuit and avoid inexperienced intermediaries.
See More
Reminder of Class Action for BlackRock TCP Capital Corp. Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased BlackRock TCP Capital Corp. securities between November 6, 2024, and January 23, 2026, to apply as lead plaintiffs by April 6, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that BlackRock TCP's management failed to timely and appropriately value investments, leading to understated unrealized losses and overstated net asset value, which rendered positive statements about the company's business misleading and lacking a reasonable basis.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its expertise and success in this field.
- Investor Action Advice: Investors can visit Rosen Law Firm's website or call the toll-free number for more information, emphasizing the importance of selecting qualified legal counsel to ensure effective representation in the lawsuit and avoid inexperienced intermediary firms.
See More
