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 period of loan markdowns, scrutiny of valuation practices, and a restructuring of its investment portfolio.
## BlackRock TCP Capital Corp Sees CEO Exit Amid Portfolio Overhaul
Phil Tseng is stepping down as chief executive of BlackRock TCP Capital Corp (TCPC), a listed private credit vehicle, following a difficult period 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. According to a regulatory filing, Tseng resigned as CEO on August 31 and is scheduled to depart BlackRock on October 1. Jason Mehring, a BlackRock executive involved with the fund, has been appointed as the new CEO, with Dan Worrell taking on the role of president.
The leadership change at TCPC occurs after a major overhaul of its portfolio was announced last month. The fund agreed to sell $523 million in 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 in 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. BlackRock has since significantly increased its ambitions in private credit, including its approximately $12bn acquisition of HPS Investment Partners last year. Tseng’s departure follows reports in July that he had been preparing to leave the firm.