📍BlackRock has just wiped out a loan in the private credit sector, raising concerns about the risks of private credit.

The $25M loan to Infinite Commerce Holdings was written down from $100 million to $0 by BlackRock in just three months. Previously, this debt was recorded almost fully on the books.
Infinite Commerce is an Amazon aggregator—a model that involves acquiring multiple Amazon stores and consolidating them into a retail ecosystem. This model boomed during COVID due to the surge in e-commerce and extremely low capital costs. But as interest rates rose and consumer demand weakened, many companies in this sector began to face problems. Amazon advertising costs increased, inventory became more expensive, and profit margins were eroded, leaving insufficient cash flow to repay debts.
This is not the first time. BlackRock previously wiped out the $150M loan to Renovo Home Partners after the company went bankrupt.
Such incidents are causing the market to start worrying about the transparency of private credit. Unlike publicly traded bonds, these loans are often valued based on internal models, allowing prices to remain stable for a long time—until risks become apparent, and the value can drop straight to zero.
In the context of the private credit market, which has grown to nearly $2 trillion, these write-offs are increasing concerns that hidden credit risks are embedded within this system.