Blackrock TCP Capital is confronting a significant challenge to its credibility as a series of class-action lawsuits mounts against the company. Legal firms allege the investment manager misrepresented the health of its portfolio and concealed losses, allegations that have emerged alongside a steep decline in the fund’s net asset value (NAV).
Key Details at a Glance:
- Class Period: November 6, 2024, to January 23, 2026
- Lead Plaintiff Deadline: April 6, 2026
- Primary Allegations: Misleading statements concerning portfolio valuations and NAV
- Upcoming Event: Quarterly earnings release on Friday, February 27, 2026
NAV Plummets Amid Legal Scrutiny
The legal actions follow two pronounced declines in the company’s share price. These drops were triggered by substantial reductions in the reported net asset value. Approximately one year ago, the stock fell nearly 10% after the NAV was reported to have decreased by over 22%, a period that also saw a marked increase in non-performing loans within the portfolio.
A similar scenario unfolded more recently. On January 23, 2026, Blackrock TCP Capital released preliminary results for the fourth quarter of 2025. The estimated NAV per share was placed between $7.05 and $7.09, representing a quarter-over-quarter decline of roughly 19%. The market’s reaction was swift, with shares plunging almost 13% to $5.10. The stock currently trades around $4.90, a level far below its 52-week high of $9.48.
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Core Allegations: Portfolio Valuation in Question
Central to the lawsuits is the accusation of financial misrepresentation. Firms including The Rosen Law Firm and Faruqi & Faruqi have filed claims stating that Blackrock TCP Capital inaccurately portrayed the fair market value of its investments. The plaintiffs contend that unrealized losses were not properly disclosed, thereby artificially inflating the net asset value.
According to the litigation, the true extent of portfolio risks only became apparent when adverse financial data reached the market, precipitating the collapse in the stock’s market value. The coming financial reports will be scrutinized for their ability to address these persistent doubts about the company’s valuation methodology.
Market Awaits Definitive Financial Report
All eyes are now on the upcoming earnings release for clarity. Scheduled for Friday, February 27, 2026, Blackrock TCP Capital will announce its final fourth-quarter and full-year 2025 results before the market opens. Investors are poised to examine the disclosure meticulously, focusing on the credit quality of the underlying portfolio companies and any management strategy outlined to stabilize the NAV.
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