BlackRock’s Latest Hero-To-Zero Private Loan
World’s biggest asset manager posts abrupt markdown on stricken firm
Welcome to Going Private, I’m Sinead Cruise and this is Bloomberg’s twice-weekly newsletter about private markets and the forces moving capital away from the public eye. Today, we bring you tough talk from leading investors downplaying the drama in private capital, one firm’s plan to take advantage of the volatility and some rare data on a direct lender’s worst nightmare. But first we look at second private loan wipeout in consecutive quarters. If you’re not already on our list, sign up here. Have feedback? Email us at goingprivate@bloomberg.net
Underwriting and valuation processes across private credit are back under the microscope after BlackRock marked a $25 million private loan as worthless three months after assigning a flawless valuation - its second hero-to-zero loan in back-to-back quarters.