00:00Joining us now is the reporter behind the story, Bloomberg's Olivia Fishlow.
00:04Olivia, thanks for joining. What do we know about this?
00:06So definitely, yeah. So we're seeing that prosecutors are looking into the BlackRock Private Credit Fund
00:11and trying to examine the valuation practices at the fund.
00:15It's a theme that we've seen crop up for private credit more generally of looking into how these managers value
00:21the assets
00:21since they don't trade on a public market.
00:23So it's really dependent on the manager themselves and the values that they ascribe.
00:27And just to rewind, I mean, this TCP, the BlackRock Fund, has had some issues, too.
00:33I seem to recall you and the team writing a story being marked at 100 one day,
00:36then a month later being written down to basically zero?
00:40Yeah. So this is their publicly traded BDC. And you're right. There's been some problems with the fund.
00:45They also, in January, released an 8K stating that they'd be marking down the assets by around 19%, I believe.
00:52And we've seen some of the quick markdowns where, you know, it was marked at maybe 100 or at par
00:58and then went down very quickly three months later.
01:01And it seems like that's a focus generally for private credit is sort of these swift markdowns that we've seen.
01:08Is this just an industry, given all the attention that's bracing itself for regulation at this point?
01:12I couldn't say one way or another, but it does seem like it's getting a lot of attention from other
01:18agencies and industries as well.
01:20And we've seen Jay Clayton mention that they're looking into valuations broadly.
01:24So I think it's a good point that you make.
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