Investing

BlackRock Debuts Retail Private Credit Fund at Tricky Time

  • Economists warn of a recession this year or next year
  • Weakness in the US economy could spur private-credit defaults

BlackRock headquarters in New York.

Photographer: Michael Nagle/Bloomberg
Lock
This article is for subscribers only.

BlackRock Inc. is embarking on a crucial test of its ability to muscle into one of Wall Street’s most competitive growth areas — pitching private assets to small investors.

The world’s largest money manager began rolling out the BlackRock Private Credit Fund this month, targeting mom-and-pop investors while vowing to keep “an eye on risk.” The fund, dubbed BDEBT, primarily makes floating-rate loans to middle-market, private US companies, an area that’s expected to grow as banks rein in lending.