Class Action Alleges BlackRock TCP Capital Inflated NAV Through Improper Valuations

Valuation Practices Under Fire at BlackRock TCP Capital

Rosen Law Firm is filing a class action against BlackRock TCP Capital Corp., alleging the BDC misleads investors by improperly valuing its credit investments and overstating net asset value (NAV). The complaint, announced on Feb. 16, 2026, says defendants make materially false or misleading statements and omit adverse facts about portfolio valuations, portfolio‑restructuring efforts, and unrealized losses. Rosen alleges investments are not being timely or appropriately valued, restructurings are failing to address challenged credits, unrealized losses are understated and NAV is therefore inflated, rendering the firm’s public statements misleading.

The suit thrusts valuation governance at BlackRock TCP into the spotlight at a time when business development companies face heightened scrutiny over pricing illiquid credit and private debt holdings. BlackRock TCP, which operates in an industry that regularly uses mark‑to‑model techniques for hard‑to‑price assets, is accused of shortcomings that could reflect weaknesses in internal valuation controls, third‑party valuation oversight or disclosure practices. The litigation frames these alleged deficiencies as central to how the company represents its financial condition and portfolio quality to investors.

Beyond legal exposure, the complaint is likely to prompt scrutiny of BlackRock TCP’s governance and disclosure processes, potentially spurring board reviews, independent valuations or revised reporting practices if the allegations gain traction. The case also underscores broader market concerns about transparency in private credit and BDC accounting, where differences in valuation methodology can materially affect reported NAV and investor perception of portfolio health. Regulators and counterparties often pay close attention to such suits because they can reveal systemic issues in valuation and risk management practices across similar funds.

Class Action Mechanics

Rosen is seeking class certification for purchasers of BlackRock TCP securities between Nov. 6, 2024 and Jan. 23, 2026. Investors wishing to seek lead‑plaintiff status must move the court by April 6, 2026. Interested parties may submit claims via https://rosenlegal.com/submit-form/?case_id=52921, call toll‑free 866‑767‑3653, or email [email protected].

Plaintiff Firm’s Credentials

Rosen highlights its securities practice and past recoveries, including securing more than $438 million in 2019 and top ISS rankings for settlements. The firm says it pursues claims on a contingency basis, advancing costs and seeking awards or settlements for eligible investors.