Federal prosecutors are investigating a publicly traded BlackRock private-credit fund known as TCPC. The probe centers on the fund’s valuation practices and financial reporting.
The fund, BlackRock TCP Capital Corp., has faced significant write-downs on its investments. Its performance has lagged behind peers, drawing scrutiny from regulators.
Prosecutors are examining whether the fund accurately valued its holdings. Discrepancies could lead to charges of misleading investors.
The investigation adds to mounting pressure on BlackRock’s private-credit arm. The sector has grown rapidly, attracting increased regulatory attention.
TCPC’s stock price has declined sharply amid the write-downs. Shareholders have expressed frustration over the fund’s underperformance.
BlackRock has stated it is cooperating with the probe. The company has not admitted any wrongdoing.
The outcome could have broader implications for the private-credit industry. Regulators are intensifying oversight of these opaque markets.
Investors are advised to monitor developments closely. Transparency in fund valuations remains a key concern.
