BlackRock TCP Capital CEO Resigns Amid 50% Drop in Net Asset Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
BlackRock TCP Capital (TCPC) CEO Phil Tseng is in the process of leaving the company after losses on loans and news of a regulatory probe into the firm's valuation practices, Olivia Fishlow and Silla Brush of Bloomberg reported yesterday, citing people familiar with the matter. The fund has long been a challenge for BlackRock (BLK), Bloomberg said. BlackRock TCP Capital's credit has significantly deteriorated, with its net assert value down 50% over the last five years, Keefe Brunette analyst Paul Johnson pointed out following the report. The news is negative, but not unexpected given the severe decline in credit, the analyst said. BlackRock TCP Capital closed Thursday down 3% to $3.36. Keefe has an Underperform rating on the shares with a $3.50 price target.
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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: 3.250
Low
5.50
Averages
6.25
High
7.00
Current: 3.250
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.
Phil Tseng to Step Down as CEO of BlackRock TCP Capital Amid Valuation Scrutiny
- Executive Change: Phil Tseng is set to step down as CEO of BlackRock TCP Capital, with the exact departure date still unclear, potentially impacting management stability and investor confidence in the firm.
- Asset Value Decline: The private credit fund marked down its net asset value twice in 2026, by 19% in January and 5% in May, indicating vulnerability amid market fluctuations and raising concerns about future performance.
- Investigative Pressure: The U.S. Attorney's Office for the Southern District of New York is reportedly investigating BlackRock TCP Capital's valuation practices, which may exacerbate market skepticism regarding its transparency and compliance, affecting its ability to raise funds.
- Industry Challenges: An analysis by Reuters shows that many publicly traded BDCs have turned unprofitable due to falling asset values and rising costs, reflecting the broader pressures facing BlackRock TCP Capital and potentially leading to wider market turmoil.
See More
Kuehn Law Investigates BlackRock TCP Capital Executives' Fiduciary Duties
- Investigation Background: Kuehn Law, PLLC is investigating whether certain officers and directors of BlackRock TCP Capital Corp breached their fiduciary duties to shareholders, with allegations that the company failed to timely and appropriately value its investments.
- Investment Mismanagement: The lawsuit claims that BlackRock TCP Capital's portfolio restructuring efforts did not effectively resolve credit challenges, resulting in overstated unrealized losses and NAV, which could adversely affect shareholder interests.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased TCPC shares before November 6, 2024, to contact the firm promptly to enforce their rights within a limited timeframe.
- Legal Cost Commitment: Kuehn Law states it will cover all case costs and does not charge its investor clients, aiming to encourage more shareholders to participate in the litigation to uphold market integrity.
See More
Kuehn Law Investigates BlackRock TCP Capital Management's Fiduciary Duties
- Shareholder Lawsuit Investigation: Kuehn Law, PLLC is investigating whether certain officers and directors of BlackRock TCP Capital Corp breached their fiduciary duties to shareholders, which could impact the company's reputation and shareholder confidence.
- Investment Valuation Issues: The lawsuit claims that BlackRock TCP Capital's investments were not timely and appropriately valued, leading to an overstatement of the company's net asset value (NAV), potentially affecting shareholder returns negatively.
- Ineffective Restructuring: The company's efforts at portfolio restructuring have not effectively resolved challenged credits, exacerbating investor concerns about the company's financial health and potentially diminishing trust in management.
- Shareholder Rights Protection: Kuehn Law urges shareholders to contact the firm promptly to enforce their rights within a limited timeframe, emphasizing the importance of shareholder participation in promoting integrity and fairness in financial markets.
See More
BlackRock Under Investigation for Valuation Practices Amidst Regulatory Scrutiny
- Investigation Escalation: The U.S. Department of Justice is probing BlackRock TCP Capital's valuation practices, focusing on how illiquid investments are assessed, with net asset value per share expected to drop to $6.76 by 2026, a 4.4% decline from last year.
- Increased Regulatory Pressure: As scrutiny on private markets intensifies, BlackRock's internal valuation models face criticism, potentially leading to increased management fee risks, which could undermine investor confidence and the company's reputation.
- Strong Financial Performance: Despite the ongoing investigation, BlackRock reported a diluted earnings per share of $14.06 for Q1 2026, a 45.1% increase from $9.64 in the same quarter last year, indicating robust financial performance and market demand.
- Cautious Market Sentiment: Although BlackRock's stock has gained 1% year-to-date, retail investor sentiment remains “bearish,” reflecting concerns over future performance and regulatory outcomes.
See More
Ares Management Discloses New Investment Stakes
- Portfolio Expansion: Ares Management disclosed new investments in its quarterly 13-F filing, including a $53.3 million stake in medical device manufacturer Integer Holdings, indicating a strategic move into the healthcare sector.
- First-Time Investments: The firm also made initial investments in business development companies like BlackRock TCP Capital and Carlyle Secured Lending, further diversifying its portfolio and strengthening its influence in the small and mid-sized lending market.
- Increased Holdings: Ares boosted its stakes in 17 other holdings, including Golub Capital BDC and Blue Owl Technology Finance, demonstrating ongoing confidence in the BDC sector despite pressures on lending standards.
- Asset Liquidation: The only sale recorded by Ares was the liquidation of its stake in New Mountain Finance, which sold a $477 million asset portfolio in February, reflecting Ares's strategy to adjust its investment portfolio in response to market changes.
See More
BlackRock's Private Credit Fund Valuation Under Federal Scrutiny
- Valuation Scrutiny: Federal prosecutors are investigating BlackRock's private credit fund valuation practices, particularly concerning BlackRock TCP Capital Corp, highlighting regulatory concerns over private asset valuations.
- Executive Questioning: The U.S. Attorney's Office for the Southern District of New York has called BlackRock executives for questioning, indicating regulators' worries about the transparency and compliance of the company's internal valuation processes.
- Asset Impairment Disclosure: In January, BlackRock disclosed writedowns on troubled portfolio investments, with expectations that net value per share would decrease by approximately 19% by the end of 2025, reflecting declining market confidence in asset quality.
- Loan Value Reassessment: BlackRock wrote down the value of a private loan to zero just three months after valuing it at 100 cents on the dollar, demonstrating volatility in asset assessments and potential risk management issues.
See More
Phil Tseng to Step Down as CEO of BlackRock TCP Capital Amid Valuation Scrutiny
- Executive Change: Phil Tseng is set to step down as CEO of BlackRock TCP Capital, with the exact departure date still unclear, potentially impacting management stability and investor confidence in the firm.
- Asset Value Decline: The private credit fund marked down its net asset value twice in 2026, by 19% in January and 5% in May, indicating vulnerability amid market fluctuations and raising concerns about future performance.
- Investigative Pressure: The U.S. Attorney's Office for the Southern District of New York is reportedly investigating BlackRock TCP Capital's valuation practices, which may exacerbate market skepticism regarding its transparency and compliance, affecting its ability to raise funds.
- Industry Challenges: An analysis by Reuters shows that many publicly traded BDCs have turned unprofitable due to falling asset values and rising costs, reflecting the broader pressures facing BlackRock TCP Capital and potentially leading to wider market turmoil.
See More
Kuehn Law Investigates BlackRock TCP Capital Executives' Fiduciary Duties
- Investigation Background: Kuehn Law, PLLC is investigating whether certain officers and directors of BlackRock TCP Capital Corp breached their fiduciary duties to shareholders, with allegations that the company failed to timely and appropriately value its investments.
- Investment Mismanagement: The lawsuit claims that BlackRock TCP Capital's portfolio restructuring efforts did not effectively resolve credit challenges, resulting in overstated unrealized losses and NAV, which could adversely affect shareholder interests.
- Shareholder Rights Protection: Kuehn Law urges shareholders who purchased TCPC shares before November 6, 2024, to contact the firm promptly to enforce their rights within a limited timeframe.
- Legal Cost Commitment: Kuehn Law states it will cover all case costs and does not charge its investor clients, aiming to encourage more shareholders to participate in the litigation to uphold market integrity.
See More
Kuehn Law Investigates BlackRock TCP Capital Management's Fiduciary Duties
- Shareholder Lawsuit Investigation: Kuehn Law, PLLC is investigating whether certain officers and directors of BlackRock TCP Capital Corp breached their fiduciary duties to shareholders, which could impact the company's reputation and shareholder confidence.
- Investment Valuation Issues: The lawsuit claims that BlackRock TCP Capital's investments were not timely and appropriately valued, leading to an overstatement of the company's net asset value (NAV), potentially affecting shareholder returns negatively.
- Ineffective Restructuring: The company's efforts at portfolio restructuring have not effectively resolved challenged credits, exacerbating investor concerns about the company's financial health and potentially diminishing trust in management.
- Shareholder Rights Protection: Kuehn Law urges shareholders to contact the firm promptly to enforce their rights within a limited timeframe, emphasizing the importance of shareholder participation in promoting integrity and fairness in financial markets.
See More
BlackRock Under Investigation for Valuation Practices Amidst Regulatory Scrutiny
- Investigation Escalation: The U.S. Department of Justice is probing BlackRock TCP Capital's valuation practices, focusing on how illiquid investments are assessed, with net asset value per share expected to drop to $6.76 by 2026, a 4.4% decline from last year.
- Increased Regulatory Pressure: As scrutiny on private markets intensifies, BlackRock's internal valuation models face criticism, potentially leading to increased management fee risks, which could undermine investor confidence and the company's reputation.
- Strong Financial Performance: Despite the ongoing investigation, BlackRock reported a diluted earnings per share of $14.06 for Q1 2026, a 45.1% increase from $9.64 in the same quarter last year, indicating robust financial performance and market demand.
- Cautious Market Sentiment: Although BlackRock's stock has gained 1% year-to-date, retail investor sentiment remains “bearish,” reflecting concerns over future performance and regulatory outcomes.
See More
Ares Management Discloses New Investment Stakes
- Portfolio Expansion: Ares Management disclosed new investments in its quarterly 13-F filing, including a $53.3 million stake in medical device manufacturer Integer Holdings, indicating a strategic move into the healthcare sector.
- First-Time Investments: The firm also made initial investments in business development companies like BlackRock TCP Capital and Carlyle Secured Lending, further diversifying its portfolio and strengthening its influence in the small and mid-sized lending market.
- Increased Holdings: Ares boosted its stakes in 17 other holdings, including Golub Capital BDC and Blue Owl Technology Finance, demonstrating ongoing confidence in the BDC sector despite pressures on lending standards.
- Asset Liquidation: The only sale recorded by Ares was the liquidation of its stake in New Mountain Finance, which sold a $477 million asset portfolio in February, reflecting Ares's strategy to adjust its investment portfolio in response to market changes.
See More
BlackRock's Private Credit Fund Valuation Under Federal Scrutiny
- Valuation Scrutiny: Federal prosecutors are investigating BlackRock's private credit fund valuation practices, particularly concerning BlackRock TCP Capital Corp, highlighting regulatory concerns over private asset valuations.
- Executive Questioning: The U.S. Attorney's Office for the Southern District of New York has called BlackRock executives for questioning, indicating regulators' worries about the transparency and compliance of the company's internal valuation processes.
- Asset Impairment Disclosure: In January, BlackRock disclosed writedowns on troubled portfolio investments, with expectations that net value per share would decrease by approximately 19% by the end of 2025, reflecting declining market confidence in asset quality.
- Loan Value Reassessment: BlackRock wrote down the value of a private loan to zero just three months after valuing it at 100 cents on the dollar, demonstrating volatility in asset assessments and potential risk management issues.
See More
