BlackRock, Inc. to Acquire Private Credit Manager Tennenbaum Capital Partners
April 17 2018 - 7:33PM
Business Wire
Strengthens BlackRock’s credit platform to
provide more diverse range of solutions for clients
Complementary acquisition assures continuity of
TCP leadership, strategy, and products
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
BlackRockMedia:Tara McDonnell,
212-810-5337tara.mcdonnell@blackrock.comorInvestors:Tom
Wojcik, 212-810-8127tom.wojcik@blackrock.comorFor Tennenbaum Capital
PartnersMedia:KekstMark Semer,
212-521-4800orFinancial ProfilesMoira Conlon,
310-622-8220orInvestors:Katie McGlynn,
310-566-1003investor.relations@tennenbaumcapital.com
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