The firm has reportedly struggled to find a buyer for the equity tranche of the proposed financing tied to an older secondaries fund.
The transaction expands institutional access to the firm's private markets capabilities across secondaries and private credit.
The alternative debt manager specializes in originating and providing financing solutions to small and middle-market enterprises.
The deal will transfer investments across 78 portfolio companies, representing approximately 48% of BlackRock TCP Capital's debt portfolio by fair value.
Potential backers reportedly sought a lower valuation for the loans held in the continuation fund.
The deal, first reported by SecondaryLink last month, comprises approximately 130 securities from a 2021-vintage direct lending fund.
The reported deal adds to a growing list of billion-dollar transactions in the private credit secondaries space.
The investment-grade-rated structure provides access to the firm's US lower middle-market direct lending strategy.
Last year, the mid-market credit alternatives specialist welcomed GP staker Hunter Point Capital as a minority investor.
The reported GP-led secondary sale would rank among the largest private credit secondary deals to date.
