Key Takeaways
- • Phil Tseng, CEO of BlackRock TCP Capital Corp (TCPC), is preparing to exit the publicly traded business development company following significant loan losses and valuation concerns.
- • BlackRock TCP Capital Corp has sustained consecutive net asset value markdowns totaling 24% in 2026, including a 19% reduction in January and a 5% reduction in May, driven by troubled investments across its private credit portfolio.
- • The fund faces federal scrutiny from the Manhattan US Attorney's office regarding its valuation practices, adding regulatory pressure to operational challenges.
- • Tseng joined BlackRock through the 2018 acquisition of Tennenbaum Capital Partners, where he served as managing partner, and has overseen multiple US direct lending strategies including the non-traded Private Credit Fund.
- • The departure timing and exit terms remain unfinalized, with Tseng currently remaining at the firm while transition details are negotiated.
Summary
Phil Tseng, chief executive officer of BlackRock TCP Capital Corp, is preparing to exit his position following a challenging period marked by significant loan losses at the publicly traded business development company. According to Bloomberg, Tseng's departure is in preparation but has not yet been finalized in terms of timing and contractual terms. He remains with the firm as negotiations continue.
BlackRock TCP Capital Corp, trading as TCPC, is a publicly traded BDC specializing in private credit loans. The fund has faced substantial headwinds this year as troubled investments triggered two consecutive reductions in net asset value. In January 2026, the fund recorded a 19% markdown, followed by an additional 5% reduction in May 2026, reflecting cumulative portfolio deterioration of 24% over a five-month period.
Beyond operational losses, TCPC is facing increased regulatory scrutiny from federal prosecutors in the Manhattan US Attorney's office, who are examining the fund's valuation practices. This investigation represents an additional layer of pressure on both the fund and its leadership during an already challenging period.
Tseng assumed the CEO role through BlackRock's 2018 acquisition of Tennenbaum Capital Partners, where he previously served as managing partner. Beyond his work at TCPC, Tseng has overseen other direct lending strategies at BlackRock, including management of the non-traded Private Credit Fund. His departure would represent a significant leadership transition for BlackRock's private credit platform at a time when private credit markets have attracted considerable institutional capital but also face valuation challenges across the broader industry.
BlackRock TCP Capital Corp, trading as TCPC, is a publicly traded BDC specializing in private credit loans. The fund has faced substantial headwinds this year as troubled investments triggered two consecutive reductions in net asset value. In January 2026, the fund recorded a 19% markdown, followed by an additional 5% reduction in May 2026, reflecting cumulative portfolio deterioration of 24% over a five-month period.
Beyond operational losses, TCPC is facing increased regulatory scrutiny from federal prosecutors in the Manhattan US Attorney's office, who are examining the fund's valuation practices. This investigation represents an additional layer of pressure on both the fund and its leadership during an already challenging period.
Tseng assumed the CEO role through BlackRock's 2018 acquisition of Tennenbaum Capital Partners, where he previously served as managing partner. Beyond his work at TCPC, Tseng has overseen other direct lending strategies at BlackRock, including management of the non-traded Private Credit Fund. His departure would represent a significant leadership transition for BlackRock's private credit platform at a time when private credit markets have attracted considerable institutional capital but also face valuation challenges across the broader industry.
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