BlackRock private debt fund slashes asset values 19%, bad loans pile up, cracks widen in private credit

If BlackRock is taking hits now, who is next in private credit?

BlackRock’s TCP Capital Corp., a private debt fund, announced a 19% cut to its net asset value per share (to ~$7.05-$7.09) for Q4 2025, due to underperforming loans and markdowns on troubled assets. They’re waiving management fees to cushion the impact.

Implications: Signals potential risks in private credit amid rising defaults, possibly eroding investor confidence and returns, though the market remains robust overall with expected growth.