Strengthens BlackRock’s credit platform to provide more diverse range of
solutions for clients
Complementary acquisition assures continuity of TCP leadership,
strategy, and products
NEW YORK--(BUSINESS WIRE)--
BlackRock Inc. (NYSE: BLK) and Tennenbaum Capital Partners, LLC (“TCP”)
today announced a definitive agreement under which BlackRock will
acquire TCP, a leading manager focused on middle market performing
credit and special situation credit opportunities.
The acquisition augments BlackRock’s position as a leading global credit
asset manager and advances its goal of providing clients with a diverse
range of alternative investment products and solutions to meet their
evolving needs.
TCP complements BlackRock’s Global Credit business with seasoned
investment talent and a strong long-term track record at a time when
clients are increasingly turning to private credit as a higher-yielding
alternative to traditional fixed income allocations. A key element of
the transaction is the continuity of TCP’s successful senior management
team, including all five partners (Lee Landrum, Michael Leitner, Howard
Levkowitz, Philip Tseng, and Rajneesh Vig).
The combined platform will merge TCP’s significant experience in private
performing credit and special situations investing with BlackRock’s
global scale, industry expertise, and portfolio and risk management
capabilities. Clients of both firms will benefit from this powerful
combination, which will result in enhanced scale and a broader
origination network. Together, BlackRock and TCP expect to offer clients
a premium and expanded set of private credit investment opportunities.
“Investors seeking to generate incremental returns and portfolio
diversification are increasingly turning to private credit where both
expertise and platform scale can drive returns,” said Tim O’Hara, Global
Co-Head of Credit at BlackRock. “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 is based in Los Angeles and has approximately $9 billion of
committed client capital as of December 31, 2017. Its more than
80-person team, which will join BlackRock as part of the transaction,
has demonstrated strong performance over nearly two decades. TCP
currently serves as the investment adviser of TCP Capital Corp. (NASDAQ:
TCPC), a business development company. Upon completion of the
transaction, TCP is expected to become a wholly-owned subsidiary of
BlackRock and, pending the approval of TCP Capital Corp.’s shareholders,
remain the investment adviser of TCP Capital Corp. Current members of
the TCP team will continue to be responsible for the investments of TCP
Capital Corp. and continue to focus on executing the same proven
investment strategies and process as they have since TCP Capital Corp.’s
inception.
Howard Levkowitz, a Managing Partner of TCP and Chairman and CEO of TCP
Capital Corp., said, “We are excited about the growth opportunities for
our business as we continue to employ the successful strategy we
pioneered nearly two decades ago. Our combination with BlackRock will
provide TCPC with increased resources, scale, and market access to
continue to build on our long track record in middle market performing
credit and to enhance long-term value for our clients and shareholders.”
Michael Leitner, a Managing Partner of TCP, said, “Joining BlackRock’s
Global Credit platform presents a unique and compelling opportunity to
expand our combined resources. We look forward to collaborating with our
new colleagues and leveraging BlackRock’s unparalleled resources to
enhance our ability to serve clients and borrowers. We are also excited
about the opportunity to be a part of building what we are confident
will be the premier business of its kind.”
“We are focused on building a private credit business that seizes on
long-term secular trends to deliver for clients the best results across
risk spectrums and market cycles,” said James Keenan, Global Co-Head of
Credit at BlackRock. “The acquisition of TCP accelerates our growth
plans and augments our position as a leading credit asset manager. With
its high-quality team, excellent long-term track record across multiple
market cycles, diverse expertise, and proven origination capabilities,
TCP is the perfect complement to the existing credit business at
BlackRock.”
“The acquisition is the next step in BlackRock’s efforts to expand its
capabilities and impact of its alternatives business globally. We are
focused on delivering a range of products and innovative solutions for
clients in need of new sources of return and new ways to manage
portfolio allocation and risk,” said David Blumer, Global Head of
BlackRock Alternative Investors.
The transaction, which is expected to close in the third quarter of
2018, is subject to customary regulatory and closing conditions. The
financial impact of the transaction is not material to BlackRock
earnings. Terms were not disclosed.
About BlackRock
BlackRock helps investors build better financial futures. As a fiduciary
to our clients, we provide the investment and technology solutions they
need when planning for their most important goals. As of March 31, 2018,
the firm managed approximately $6.317 trillion in assets on behalf of
investors worldwide. For additional information on BlackRock, please
visit www.blackrock.com
| Twitter: @blackrock
| Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock.
About Tennenbaum Capital Partners
Tennenbaum Capital Partners, LLC ("TCP") is an alternative investment
management firm with approximately $9 billion of committed capital
focused on direct lending and special situations for middle-market
companies. TCP manages funds and accounts on behalf of global
institutional investors. It also manages a publicly-traded business
development company, TCP Capital Corp. (NASDAQ:TCPC). Since its founding
in 1999, TCP has invested approximately $22 billion in over 560
companies. TCP is headquartered in Los Angeles with additional offices
in Atlanta, New York and San Francisco. For more information, please
visit: www.tennenbaumcapital.com
and www.tcpcapital.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180417006773/en/
For BlackRock
Media:
Tara
McDonnell, 212-810-5337
tara.mcdonnell@blackrock.com
or
Investors:
Tom
Wojcik, 212-810-8127
tom.wojcik@blackrock.com
or
For
Tennenbaum Capital Partners
Media:
Kekst
Mark
Semer, 212-521-4800
or
Financial Profiles
Moira Conlon,
310-622-8220
or
Investors:
Katie McGlynn,
310-566-1003
investor.relations@tennenbaumcapital.com
Source: BlackRock Inc.