Blackrock TCP Capital Shares Plunge Amid Portfolio Woes and Legal Challenges

Blackrock TCP Capital reports a 19% NAV drop in Q4 2025, triggering class-action lawsuits. Portfolio losses and rising non-accrual loans drive financial strain.

Preliminary fourth-quarter 2025 results from Blackrock TCP Capital have revealed significant financial strain, marked by a sharp decline in a key valuation metric and rising credit issues. The company now faces mounting legal scrutiny alongside its operational challenges, as investor confidence erodes.

Legal Actions Follow Steep NAV Decline

The financial setback has triggered legal consequences. Several law firms have filed class-action suits, alleging the company misled investors regarding the true valuations and the success of portfolio restructurings. The central allegation questions whether unrealized losses were communicated in a timely and transparent manner prior to the severe drop in net asset value.

For affected shareholders, April 6, 2026, has emerged as a critical deadline to file claims in the ongoing securities litigation. The stock's price action reflects the deep concern, having hit a new 52-week low of 3.73 euros, underscoring the market's reaction to the double-digit NAV decrease.

Net Asset Value and Credit Quality Deteriorate

A substantial downward revision in portfolio valuation is at the heart of the report. The estimated net asset value (NAV) per share fell to a range of $7.05 to $7.09 by the end of 2025. This represents an approximate 19% collapse compared to the previous quarter.

Specific difficulties at portfolio companies, including Edmentum, Razor, and SellerX, were primary drivers. These positions alone reduced the per-share value by about $1.11. Analysts point to a broader deterioration in credit quality as a fundamental cause: the proportion of loans on non-accrual status, based on cost, increased from 7.0% to 9.6%.

Rising Leverage and Fee Concessions Provide Limited Relief

Compounding the valuation issues, the company's regulatory debt level rose significantly to 1.45 times equity. The net investment income (NII) per share for Q4 is anticipated to be between $0.24 and $0.26. This result received minor support from a partial waiver of advisory fees, a measure that only slightly offset the broader pressures.

Management's efforts to contain portfolio risks are now unfolding against this backdrop of financial decline and legal headwinds.