BlackRock announced it will acquire private credit manager Tennenbaum Capital Partners in a deal that strengthens the $6.3 trillion money manager's credit platform.
Terms of the deal were not disclosed.
TCP focuses on middle-market performing credit and special situation credit opportunities. The Santa Monica, Calif.-based firm has $9 billion of committed client capital and a team of more than 80 people. The team will join BlackRock as part of the deal, which is expected to be completed in the third quarter, said a news release.
The acquisition complements BlackRock's existing global credit business. TCP's senior management team, including all five partners, will remain in place. TCP is expected to become a wholly owned subsidiary of BlackRock. The size of BlackRock's credit investments under management could not be learned.
The deal gives enhanced scale and a broader origination network to both firms, added the release.
"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 Timothy O'Hara, managing director and global co-head of credit at BlackRock Alternative Investors, in the release. "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 the investment adviser of business development company TCP Capital Corp. Following completion of the deal, TCP is expected to remain the investment adviser of TCP Capital Corp., subject to approval by the company's shareholders.
"We are excited about the growth opportunities for our business as we continue to employ the successful strategy we pioneered nearly two decades ago," said Howard Levkowitz, co-founder and managing partner of Tennenbaum Capital Partners, and chairman and CEO of TCP Capital Corp., in the release.
The deal "is the next step in BlackRock's efforts to expand its capabilities and impact of its alternatives business globally," added David Blumer, senior managing director and global head of BlackRock Alternative Investors, also in the news release.
The transaction is subject to customary regulatory and closing conditions. The financial impact of the transaction is not material to BlackRock earnings.
Spokesmen for BlackRock and TCP could not be reached for comment.