This transaction could stem reputational risk for BlackRock from redemption gating press related to this retail vehicle.
Private credit assets transferred to a continuation vehicle
BlackRock TCP is a retail private credit vehicle.
BlackRock TCP set up a continuation vehicle – “Special Value Continuation Partners LLC” – moved approximately $523 million of investments across 78 portfolio companies to the vehicle – and sold 95% of the equity in this vehicle to private credit secondaries investor Pantheon.
The continuation vehicle ends up with around two-thirds of BlackRock TCP’s original investment in each portfolio company, and BlackRock TCP keeps around a third.
Sold at 95% of book value
The assets were sold at a purchase price of 95% of their gross fair value (as at the end of 2025), and it resulted in a NAV reduction of 10.4% (the difference coming from leverage).
Reduced leverage for BlackRock TCP
The transaction significantly reduces the net leverage on BlackRock TCP’s portfolio from 1.4x to 0.4x.
Reduces redemption gating and negative news
This may set up BlackRock TCP to reduce the need to gate redemption requests – both because it may have better access to cash, and because redemption request volumes may fall if investors believe that the portfolio is marked at a good valuation. This is valuable in keeping BlackRock out of the news cycle around retail private credit issues. BlackRock TCP also says it is working on other strategic measures.
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