What caused the BlackRock TCP Capital fund's net asset value to decline?

The fund's net asset value declined by 19% due to a sharp rise in nonperforming loans, which now represent about 10% of its portfolio.

What is the current status of nonperforming loans in the BlackRock fund?

As of January 27, 2026, nonperforming loans in the BlackRock TCP Capital fund have risen to approximately 10% of its portfolio.

What is the general function of Business Development Companies (BDCs)?

BDCs typically offer high-interest loans to midsize corporations with junk credit ratings, using loan income to pay significant dividends to their investors.

Home / Business and Economy / BlackRock Fund Plunges on Bad Loans

BlackRock Fund Plunges on Bad Loans

27 Jan

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Summary

BlackRock TCP Capital fund saw a 19% net asset value decline.
Nonperforming loans surged to 10% of the fund's portfolio.
Troubled BDCs were previously highlighted in a December report.

Investor anxiety is escalating in the private credit market following a substantial 19% decrease in the net asset value of a BlackRock-managed fund. The fund disclosed this steep decline late Friday, directly linked to a significant increase in nonperforming loans within its portfolio.

As of January 27, 2026, nonperforming loans have reached approximately 10% of the fund's holdings. This downturn has led to a notable drop in the prices of the fund's stocks and bonds.

Business Development Companies (BDCs) like this one typically provide high-interest loans to medium-sized corporations with subprime credit ratings. They fund these loans by issuing shares and borrowing from bond and loan markets, using the income to pay substantial dividends to their investors.