BlackRock private credit fund CEO exits amid TCPC overhaul
Phil Tseng is stepping down as chief executive of BlackRock TCP Capital Corp (TCPC), following a difficult period for the listed private credit vehicle that has included substantial loan markdowns, scrutiny of its valuation practices and a significant restructuring of its investment portfolio, according to a report by Bloomberg.
The report cites a regulatory filing as showing that Tseng resigned as CEO on 31 August and is due to leave BlackRock on 1 October. Jason Mehring, a BlackRock executive involved with the fund, has been appointed CEO, while Dan Worrell will take over as president.
The leadership transition follows a major overhaul of TCPC’s portfolio announced last month. The fund agreed to sell $523m of loans to a vehicle backed by secondaries investor Pantheon and has appointed advisers at Keefe, Bruyette & Woods to explore options for a further $671 million of assets.
TCPC has faced mounting pressure after significant reductions in the value of its private loan portfolio. The fund cut its net asset value by 19% in January and a further 5% in May as several investments came under stress.
The vehicle’s valuation processes have also attracted attention from US authorities, with the Manhattan US Attorney’s Office seeking information about TCPC’s valuation practices, according to reports earlier this year.
The difficulties come as BlackRock seeks to expand aggressively across private markets. TCPC represents only a small portion of the asset manager’s $15.3tn in assets, but the strategy dates back to BlackRock’s 2018 acquisition of middle-market private credit specialist Tennenbaum Capital Partners.
BlackRock has since significantly increased its ambitions in private credit, including its approximately $12bn acquisition of HPS Investment Partners last year as it sought to strengthen its position in one of the fastest-growing areas of alternative investment.
Tseng’s departure follows reports in July that he had been preparing to leave the firm.
