BlackRock TCP Capital Corp Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against BlackRock TCP Capital Corp (TCPC).

If you purchased or held BlackRock TCP Capital securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About BlackRock TCP Capital

BlackRock TCP Capital is a business development company that primarily invests in debt securities of middle-market companies. The company operates with a focus on generating current income and capital appreciation for its shareholders by building a diversified portfolio of investments.

As a closed-end investment fund, BlackRock TCP Capital has historically emphasized its ability to maintain stable net asset values (NAV) and consistent dividends, which are key metrics for investors in the BDC sector.

Why is BlackRock TCP Capital under investigation?

Lawyers are investigating whether BlackRock TCP Capital may have made misleading statements or omitted material information regarding the health of its investment portfolio and the true state of certain key loans. The investigation focuses on a period beginning Feb. 27, 2025, when company executives began making positive statements about portfolio performance, and ending Jan. 23, 2026, when a significant corrective disclosure was made.

On Jan. 23, 2026, after market close, BlackRock TCP Capital issued preliminary fourth quarter 2025 results that revealed a sharp decline in NAV to approximately $7.06, a drop of about 19% from $8.71 as of Sept. 30, 2025. When trading resumed on Jan. 26, 2026, the company’s stock fell approximately 13%, dropping from around $5.86 per share at the Jan. 23 close to about $5.10 per share, erasing roughly $0.77 per share in value. With nearly 84.84 million shares outstanding, this one-day decline wiped out an estimated $65 million in market capitalization, and the stock has not recovered this loss.

The Jan. 23, 2026, disclosure attributed the NAV decline to specific portfolio credits, including Edmentum, Razor, SellerX, HomeRenew/Renovo, Hylan, and InMobi, which together contributed about 67% of the NAV loss.

During a potential class period, BlackRock TCP Capital executives, including CEO Phil Tseng, made several statements about the company’s portfolio health and credit performance. For example, in the Feb. 27, 2025, earnings release, Tseng stated that the “vast majority of our portfolio continued to perform well” and that the company had a “plan in place” to navigate challenges. Similar positive statements were made throughout 2025, including claims of “meaningful progress…strengthening our portfolio” and “signs of portfolio stabilization” in May, and assurances of “solid progress” and risk reduction in August and November. However, lawyers may examine whether these statements accurately reflected the underlying credit quality, as the Jan. 2026 disclosure revealed that key loans had been deteriorating and were not properly marked down.

Shareholders could also investigate whether BlackRock TCP Capital adequately disclosed the extent of loan impairments and restructuring activities prior to Jan. 2026. The investigation might look into whether the company deferred losses by modifying or recapitalizing troubled loans, rather than recognizing impairments, and whether investors were informed about the true risks in the portfolio.

The timing of the stock price drop further supports the investigation, as the broader market did not experience similar declines on Jan. 26, 2026. On that day, the S&P 500 and Nasdaq were both up slightly, while BlackRock TCP Capital fell 13%, suggesting the loss was tied to the company’s disclosure and not to market-wide factors.

The estimated damages from the stock drop are significant, with a preliminary calculation of about $0.77 per share in losses, totaling roughly $65 million in market value. Investors who held shares before the Jan. 23, 2026, disclosure may have suffered substantial financial harm.

Your rights and next steps

This is an active investigation into whether BlackRock TCP Capital and its executives may have violated federal securities laws by making potentially misleading statements or failing to disclose material information to investors. If lawyers find sufficient evidence of misconduct, this investigation could lead to a securities class action lawsuit on behalf of affected investors.

Investors who purchased BlackRock TCP Capital securities between Feb. 27, 2025, and Jan. 23, 2026, and suffered losses during this period may have the right to participate in any potential class action that arises from this investigation. If eligible, investors could seek to recover their losses and hold the company and its executives accountable for any proven securities violations.

Lawyers are ready to help investors understand their rights and guide them through the process of joining the investigation. It is important to act promptly, as securities investigations and any resulting class actions are subject to strict deadlines.

You may be entitled to compensation

If you purchased or held BlackRock TCP Capital securities and experienced financial losses during the period under investigation, you may be eligible to join this case and seek compensation for your losses. Securities investigations are time-sensitive, so it is important to take action as soon as possible.

To learn more about your rights and to join the investigation, complete the form below.