BlackRock TCP Capital offloads $523m of loans to Pantheon
The sale of 95% of a continuation vehicle holding about $523m of loans would cut net leverage to roughly 0.4x from 1.38x.
BlackRock TCP Capital on 4 August agreed to sell 95% of the equity in a continuation vehicle holding about $523m of private loans to Pantheon-sponsored funds and accounts, while retaining a 5% stake. The deal would cut net leverage to roughly 0.4x from 1.38x, giving the listed business development company a lighter balance sheet as it works to reposition the fund.
The transaction shifts nearly half of TCPC’s debt book into a Pantheon-backed vehicle, with the assets representing 48% of total debt investments across 78 portfolio companies. Market coverage described Pantheon as the secondary specialist backing the continuation vehicle, a structure more commonly associated with private equity secondaries but, here, applied to a private credit portfolio.
For TCPC, the balance-sheet benefit comes with an immediate valuation hit. Search-derived reporting indicated an expected net asset value decline of about 10.4%, equivalent to a loss of $0.68 per share based on 30 June figures, while gross proceeds of about $152m were to be used primarily to reduce debt.
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