BlackRock Shares Slide 6% Amid Private Credit Stress and $25M Loan Write-Down
BlackRock Inc. faced a sharp 6.6% stock decline after writing off a $25 million loan to Infinite Commerce Holdings, an Amazon aggregator. The asset manager marked the second-lien loan to zero just three months after valuing it at par, raising questions about its exposure to the $1.8 trillion private credit market.
The HPS Corporate Lending Fund, managed by BlackRock, saw record redemption requests capped at 5%, highlighting liquidity mismatches in non-traded credit instruments. Analysts warn of mounting stress in private credit as institutional investors grapple with valuation volatility and redemption pressures.
Market observers note the Infinite Commerce write-off reflects broader challenges in private lending, particularly for e-commerce roll-up strategies. The episode underscores how rapidly growing private credit markets may face turbulence as interest rates rise and liquidity tightens.
