Another cockroach crawls out of the woodwork...
In the grand tradition of Wall Street's endless parade of "resilient" investments that evaporate faster than a hedge fund's excuses, BlackRock - that $10 trillion behemoth masquerading as a fiduciary - has just discovered the hard way that private debt isn't quite the "uncorrelated" panacea it's been hawking to pension funds and the terminally optimistic.
Bloomberg reports that a mere month ago, the iShares overlords were marking Renovo Home Partners' IOUs at a pristine 100 cents on the dollar, as if the Dallas-based kitchen-and-bathroom flipper was churning out profits like an OnlyFans 'influencer'.
Fast-forward to last week, and poof: valuation revised to a resounding zero.
Because nothing says "diversification" like watching your balance sheet get torched in a single earnings call.
Renovo, a Frankenstein's monster of a roll-up stitched together by private equity players at Audax Group back in 2022, didn't just stumble - it plunged into Chapter 7 oblivion, signaling a full liquidation shutdown.
Bloomberg notes that while BlackRock, ever the glutton for yield, gobbled up the lion's share of Renovo's $150 million private debt buffet, it was not alone.
Apollo Global's MidCap Financial and Oaktree Capital nibbled at the scraps, per whispers from those in the know who wouldn't dare attach their names to this private equity horror show.
No one with a Bloomberg terminal needed a crystal ball to see the dumpster fire brewing.
In the grand tradition of Wall Street's endless parade of "resilient" investments that evaporate faster than a hedge fund's excuses, BlackRock - that $10 trillion behemoth masquerading as a fiduciary - has just discovered the hard way that private debt isn't quite the "uncorrelated" panacea it's been hawking to pension funds and the terminally optimistic.
Bloomberg reports that a mere month ago, the iShares overlords were marking Renovo Home Partners' IOUs at a pristine 100 cents on the dollar, as if the Dallas-based kitchen-and-bathroom flipper was churning out profits like an OnlyFans 'influencer'.
Fast-forward to last week, and poof: valuation revised to a resounding zero.
Because nothing says "diversification" like watching your balance sheet get torched in a single earnings call.
Renovo, a Frankenstein's monster of a roll-up stitched together by private equity players at Audax Group back in 2022, didn't just stumble - it plunged into Chapter 7 oblivion, signaling a full liquidation shutdown.
Bloomberg notes that while BlackRock, ever the glutton for yield, gobbled up the lion's share of Renovo's $150 million private debt buffet, it was not alone.
Apollo Global's MidCap Financial and Oaktree Capital nibbled at the scraps, per whispers from those in the know who wouldn't dare attach their names to this private equity horror show.
No one with a Bloomberg terminal needed a crystal ball to see the dumpster fire brewing.
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