The claim, filed by a Blue Owl Capital Corp. investor, alleges the fund's advisor inflated asset values to charge excessive fees.
Repurchase requests in the $4.3 billion private debt fund have now fallen for two consecutive quarters, more than halving from 8.5% in Q1 to 3.8% in Q3.
The $25 billion HPS Corporate Lending Fund has once again limited withdrawals after repurchase requests hit ~11.5% of outstanding shares.
Managing Director Jason Mehring will replace Tseng as Director, Board Chair, and CEO across three BlackRock BDCs.
Shareholders submitted an estimated $4.3 billion of Q3 repurchase requests, representing around 10% of shares outstanding, as of June.
If approved, RBC BlueBay Enhanced Income Fund could invest alongside affiliated strategies spanning event-driven credit, special situations, and securitized assets.
In connection with the deal, the surviving BDC amended a JPMorgan financing facility, cutting Tranche A commitments from $800 million to $500 million and converting Tranche B into a revolver.
Morgan Lewis analyzes how the SEC's latest proposal could broaden fundraising flexibility and reduce regulatory friction for alternative investment vehicles.
The investments will be sold at 99.7% of fair value to fund capital distributions and pay down debt.
The class action suit is the latest development in the firm's now-cancelled BDC merger.
