NEW YORK, April 17, 2018 /PRNewswire/ -- 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.
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SOURCE TCP Capital Corp.