Phil Tseng is reportedly stepping down as CEO of BlackRock TCP Capital Corp. (TCPC), BlackRock Private Credit Fund (BDEBT), and BlackRock Direct Lending Corp. (BDLC). This leadership change comes as BlackRock, along with other major asset managers like KKR & Co. and Apollo Global Management Inc., grapples with issues in certain private credit funds, which have become a reputational challenge amidst the turbulent $1.8 trillion market in 2026.
BlackRock's private credit endeavors have faced significant headwinds. Earlier in 2026, BlackRock TCP Capital Corp. projected a 19% cut in its net asset value per share for the quarter ending December 31, moving from $8.71 to an estimated $7.05 to $7.09. This markdown was attributed to a series of troubled loans. Furthermore, BlackRock TCP Capital Corp. saw its net asset value decline by 5% in the first quarter to $6.72 per share, with nearly 27.2% of its portfolio invested in software companies, which have been particularly impacted.
BlackRock's ambitious plans to expand in private credit by acquiring HPS Investment Partners for $12 billion and targeting retail investors with promises of high returns have also encountered difficulties. Just eight months after this acquisition, the firm faced a rush of withdrawals from some existing clients, indicating broader market angst.
Tseng has been a key figure leading BlackRock's U.S. core middle market direct lending strategy within BlackRock's Private Financing Solutions platform, overseeing investment processes, evaluation, structuring, and execution of private secured investments. His departure underscores the significant challenges BlackRock is working to resolve in its private credit offerings.
