BlackRock To Buy US Private Credit Manager Tennenbaum Capital Partners

BlackRock has signed an agreement to acquire US private credit manager, Tennenbaum Capital Partners (TCP), for an undisclosed sum.

Established in 1999, TCP is an alternative investment management firm, which invests in middle-market enterprises via performing credit and special situations.

The acquisition will help BlackRock to offer a range of alternative investment products and solutions to its clients.

TCP’s investment vehicles comprised of private funds, separate accounts, registered funds,as well as publicly-traded business development firm TCP Capital.

Its investors include public and private pension funds, financial institutions, multi-national corporations, endowments and foundations, charitable organizations and family offices.

TCP provides debt financing to middle-market companies to meet their needs such as LBO activity, growth, corporate acquisitions and refinancings/recapitalizations, as well as expand stage venture lending.

The company also invests in firms undergoing operational, financial or industry change across both private lending activities and secondary market purchases.

TCP has around $9bn of committed client capital as of 31 December 2017. Since its establishment, TCP invested around $22bn in more than 560 companies.

With headquarters in Los Angeles, TCP also operates offices in Atlanta, New York and San Francisco.

Subject to customary regulatory and closing conditions, the deal is expected to complete in the third quarter of this year.

BlackRock credit global co-head Tim O’Hara said: “Investors seeking to generate incremental returns and portfolio diversification are increasingly turning to private credit where both expertise and platform scale can drive returns.

“This acquisition will enhance our ability to deliver clients private credit solutions that meet their investment objectives across a range of risks, liquidity, and geographies.”

TCP managing partner Michael Leitner said: “We look forward to collaborating with our new colleagues and leveraging BlackRock’s unparalleled resources to enhance our ability to serve clients and borrowers.”

BlackRock provides investment and technology solutions to its clients. The firm managed around $6.31 trillion in assets on behalf of investors, as of 31 March 2018.

Image: BlackRock headquarters in Midtown Manhattan, New York City. Photo: courtesy of Americasroof.