BlackRock Sees $150M Renovo Loan as Worthless Amid Bankruptcy Filing

BlackRock has written off its entire investment in Renovo Home Partners, a home improvement company that filed for bankruptcy, amid concerns about the valuation of private debt. The drastic revision comes after BlackRock initially deemed the debt to be worth 100 cents on the dollar, but now estimates it to be worthless. The write-down highlights the disconnect between private credit valuations and the performance of underlying companies, which critics see as a major vulnerability in the market.