BlackRock’s $25 million loan dropped from “par value” to zero in three months, raising renewed concerns about private credit risk.

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Media reports say that BlackRock has directly written down the value of a private loan to zero at the end of 2025, even though just three months ago the loan was still valued at 100% of face value. This is the second recent case of a sudden "write-down to zero" impacting its private credit business.

BlackRock TCP Capital Corp. stated in its fourth-quarter filings released last week that the roughly $25 million loan was provided to Infinite Commerce Holdings. This company is a so-called “Amazon aggregator,” selling various products by acquiring online sellers. Now, this loan is worthless.

This write-down is part of broader loan losses disclosed by BlackRock at the end of January this year, when the company said its private credit fund would lower net asset value by 19%.

Delayed Private Credit Valuation Problem Exposed

Analysts believe, although this is a relatively small loan in a troubled sector, the sudden revaluation highlights a key issue critics point out about the private credit industry: The valuation of illiquid loans often lags behind the deterioration of borrower operations.

For example, in the months before Zips Car Wash filed for bankruptcy protection, its private credit supporters still valued the loan close to face value. Last November, BlackRock TCP also slashed the value of its loan to home improvement company Renovo Home Partners to near zero; this company likewise fell into distress.

This write-off occurred months after Infinite Commerce merged with another Amazon aggregator, Razor Group, which was also a BlackRock debtor, in August. When the two merged, a new debt structure was formed and the valuation was based on face value. Earlier, BlackRock had severely downgraded its valuation of Razor’s loan.

Like other private credit institutions, BlackRock is facing a sharp reversal in the Amazon aggregator sector. The industry grew rapidly during the COVID-19 pandemic as online shopping surged. Now, Infinite Commerce’s restructured debt has been written down from “face value” to zero, showing the scale and speed of the financial turmoil in the industry.

Another Infinite Commerce lender, Victory Park, according to documents, had written off its entire investment as of December 31. The institution blamed poor performance on weak demand and tariff-driven inventory cost increases. A Victory Park representative did not respond to a request for comment.

BlackRock TCP also indicated in its fourth-quarter filings that its investment in SellerX was partially written down. Last week, the fund cut dividends from 25 cents per share to 17 cents, causing the stock price to drop sharply.

Worries Over Private Credit Market Intensify

BlackRock TCP stated in its filings that 91% of the write-downs in its portfolio came from deals underwritten in 2021 or earlier, which are now being hit by “the prolonged high interest rate environment.”

These moves have further intensified concerns about default risk and underwriting standards in the $1.8 trillion private credit market. The sector previously made huge bets on software companies, which now face threats from artificial intelligence, leading anxious investors to submit unprecedented redemption requests. On Monday, Blackstone Group announced it would allow investors to redeem a record 7.9% of shares from its flagship private credit fund.

Still, leading private credit institutions continue to achieve relatively strong returns.

Highlighting the market's disagreement over the industry's prospects, Apollo Global Management CEO Marc Rowan warned that private credit firms are about to face a wave of industry shakeout. Yet on the same day, Ares Management CEO Mike Arougheti said UBS analysts’ prediction last week that private credit default rates could rise to 15% was "completely wrong".

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