From Citywire

BlackRock is to buy private credit firm Tennenbaum Capital Partners (TCP) in a move that will strengthen the world’s largest asset managers’ credit platform and diversify its alternative investment offerings.

Los Angeles, California-based TCP, which currently serves as an investment advisor to business development company TCP Capital, had approximately $9 billion of committed capital at the end of last year.

The alternative asset manager’s more than 80-person team, which includes five senior management partners: Lee Landrum, Michael Leitner, Howard Levkowitz, Philip Tseng, and Rajneesh Vig. All of whom will join BlackRock as part of the transaction.

The transaction, which is expected to close in the third quarter of 2018, will see TCP become a wholly-owned subsidiary of BlackRock.

BlackRock’s chief executive Larry Fink said in a recent earnings call that the firm expects ‘illiquid alts to be one of the more significant delta or net drivers for us in the next few years.’

The firm is also in the middle of raising money for a global alternative energy fund and a long-term private capital fund.

BlackRock said the financial impact of the transaction was not material to its earnings. BlackRock had approximately $6.317 trillion in total assets under management as of March 31.



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