Asset manager BlackRock (BLK) has become the latest Wall Street firm to run into trouble with private credit.
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BlackRock TCP Capital Corp. (TCPC), a private-credit fund, said it expects to take a hit to its net asset value (NAV) for the fourth quarter, in what is being widely viewed as yet another black eye for the private credit industry.
Specifically, the BlackRock fund said that its net asset value will fall 19% for the fourth quarter of 2025 due to a write-down that’s been “driven by issuer specific developments.” BlackRock, the world’s largest asset manager with $14 trillion on its books, hasn’t elaborated on the issues at TCP Capital.
Never One Cockroach
TCP Capital Corp. said that six private credit companies in its portfolio, accounting for 67% of the decline in the company’s net asset value per share, are responsible for the write-down. Of those six companies, Edmentum, an educational software company, is the largest position.
This is the latest sign of trouble in the private credit market. The private credit sector came under scrutiny last year following bankruptcies at auto parts supplier First Brands and subprime vehicle lender Tricolor Holdings. Those bankruptcies triggered a selloff in some bank stocks, notably Jefferies Financial (JEF).
This led JPMorgan Chase (JPM) CEO Jamie Dimon to call out the private credit market, saying: “When you see one cockroach, there’s probably more.” TCP Capital makes loans to midmarket companies worth between $100 million and $1.5 billion.
Is BLK Stock a Buy?
BlackRock’s stock has a consensus Strong Buy rating among 10 Wall Street analysts. That rating is based on eight Buy and two Hold recommendations issued in the last three months. The average BLK price target of $1,354.30 implies 19.84% upside from current levels.
