Alternative investment platform iCapital is making a private credit fund from BlackRock available to accredited Canadian high-net-worth investors through their financial advisors.
iCapital, a New York-based fintech which operates a funds marketplace, has created a feeder vehicle to BlackRock's Private Credit Fund for Canadian investors. The feeder fund contains CAD-hedged and USD-denominated options including securitized assets, and holdings can be included in Canadian registered investments such as retirement savings plans.
It's the first BlackRock product we created a Canadian feeder fund for.
The initiative broadens access to institutional-grade private credit to accredited high-net-worth investors through iCapital's platform, providing a simplified subscription process and lower minimum investment amounts, according to an iCapital press release. BlackRock has a minority stake in iCapital.
"This is a feeder evergreen private credit fund - not a structured note - which allocates capital into underlying U.S. 40 Act equivalent funds," Tom Johnston, iCapital's managing director and head of client solutions Canada, told ASR. "
, although we've worked with BlackRock on other offerings outside Canada."
A "40 Act fund" is a publicly registered pooled investment vehicle regulated under the U.S. Investment Company Act of 1940. According to Allvue Systems, such funds have higher requirements for prescriptive governance and operational demands such as liquidity monitoring, portfolio restrictions and limitations on asset concentrations, and retail transparency and reporting.
The Breakdown
BlackRock's Private Credit Fund (BDEBT) was launched in June 2022. According to its factsheet, the fund is expected to pay regular monthly distributions at the discretion of its Board of Trustees, based on earnings, cashflow, capital needs and general financial condition.
"As a result, our distribution rates and payment frequency may vary from time to time. Distribution payments aren't guaranteed," the factsheet stated.
According to its prospectus, the fund invests in senior secured or unsecured loans, middle market direct lending, broadly syndicated loans/high yield bonds, CLOs, ABS, MBS, subordinated or mezzanine loans and, to a lesser extent, equity and equity-related securities.
As of August 31, 2025, the fund had a year-to-date total return of 5.10%, a 9.82% distribution rate, and total assets of $1.96 billion, the factsheet stated.
Access Broadens
Private credit has been available exclusively to institutional investors, historically, but advisors are increasingly using the products to provide high-net-worth clients with greater portfolio diversification. As the collapse of auto parts group First Brands and auto lender Tricolor showed, however, private credit is risky, and there may be liquidity issues.
iCapital's partnership with BlackRock follows an initiative in October 2024 with Toronto-based alternative asset manager Sagard to open Sagard's private credit fund to accredited Canadian high-net-worth investors through iCapital.
Assets in Sagard's fund, available through investors' advisors, include private credit investments, CLOs and broadly syndicated loans as well as asset-based lending such as whole loans and equity investments. Holdings in the fund can be included in Canadian registered retirement savings plans.
