The world’s largest asset manager is expanding its reach in alternative credit markets.

BlackRock announced Tuesday evening that it had agreed to acquire Tennenbaum Capital Partners, a $9 billion asset manager focused on direct lending and special situation credit opportunities.

Since its founding in 1999, TCP has invested roughly $22 billion across more than 560 companies, according to the announcement.

Though BlackRock has a private credit offering, it is better known for more traditional bond funds. As of March 31, BlackRock managed $6.3 trillion, including $570 billion in institutional fixed income assets, according to the firm’s latest earnings report. Its global credit business had $80 billion under management as of the end of last year, according to a person familiar with the matter.

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David Blumer, global head of BlackRock Alternative Investors, said in a statement that the acquisition of TCP was the next step in the firm’s plan to build out its alternatives business. His colleague Tim O’Hara, BlackRock’s global co-head of credit, also noted a growing demand for private credit, as investors seek diversification and more attractive returns.

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“This acquisition will enhance our ability to deliver clients private credit solutions that meet their investment objectives across a range of risks, liquidity, and geographies," O’Hara said in the company statement.

Under the planned acquisition, Los Angeles-based TCP will become a wholly-owned subsidiary of BlackRock, retaining its 80-person team, including firm partners Lee Landrum, Michael Leitner, Howard Levkowitz, Philip Tseng, and Rajneesh Vig.

“We are focused on building a private credit business that seizes on long-term secular trends to deliver for clients the best results across risk spectrums and market cycles,” said James Keenan, global co-head of credit at BlackRock, in the statement. “The acquisition of TCP accelerates our growth plans and augments our position as a leading credit asset manager.”