Hudson Bay Capital Management has put aside its effort to build a separate private credit franchise. Hudson Bay's spokesperson said the firm had no comment.
The firm is separating from Raj Vig and Tim Morris, according to people familiar with the matter. The pair were among Hudson Bay's most senior investment additions in recent years from BlackRock's legacy private credit arm. Since their exit from BlackRock, one slice of that business - BlackRock's TCP Capital fund - has taken steep write downs on troubled loans and come under US regulatory scrutiny over how valuations were handled.
Vig joined Hudson Bay last year following his tenure leading BlackRock TCP Capital Corp. as its chairman and CEO, the publicly traded private credit vehicle that BlackRock bought from Tennenbaum Capital Partners in 2018. Morris, who left BlackRock in 2024, previously served as the Americas COO of BlackRock's global credit unit prior to his move to Hudson Bay. In a statement, Morris said that during his time at BlackRock "there were no regulatory inquiries or issues related to valuations." He added the funds he helped oversee recorded eight years of "clean audit opinions and a clean SEC exam." Vig didn't provide comment.
At Hudson Bay, Vig's group had been allocated about $1 billion in seed money to begin investing and raise capital for a new fund intended to create a standalone private credit platform, people familiar said. Even with the dedicated buildout on hold, Hudson Bay leaders have told remaining team members the firm will keep deploying capital across credit, including activity in the private credit market pegged at roughly $1.8 trillion. Separately, last month BlackRock's TCP Capital offloaded assets and said it is weighing strategic moves that could include returning cash to shareholders and combining with another entity.
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Translation for your portfolio: Hudson Bay is stepping back from a big standalone build, but it is not stepping out of credit. The firm still plans to put money to work across credit strategies, including in private markets that have grown into a multi-trillion dollar opportunity set.
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