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Q3 2026 Shareholder Letter

FOR EXISTING SHAREHOLDERS ONLY

BCRED Returns and portfolio Highlights

Inception-to-date total net return (Class I) [ 1 ]

8.9%

Annualized distribution rate (Class I) [ 3 ]

9.2%

Senior secured debt [ 15 ]

97%

Average loan-to-value (“LTV”) at time of underwrite [ 16 ]

41%

November 3, 2026

Dear BCRED Shareholders,

During Q3’26, BCRED generated a 1.7% total net return (Class I), [ 1 ] supported by strong income generation and overall healthy credit fundamentals. BCRED has generated an 8.9% annualized total net return since inception (Class I), [ 1 ] outperforming leveraged loans by 280bps, [ 2 ] and is currently delivering a 9.2% annualized distribution rate (Class I), [ 3 ] an approximately 190bps yield premium relative to leveraged loans. [ 4 ]

BCRED is a predominantly floating rate, income-oriented strategy, designed to deliver returns primarily through monthly distributions from contractual interest income. Since inception, BCRED has paid $13.87 per share in cash distributions (Class I). [ 5 ] Together with current net asset value (“NAV”), this equals $37.38 per share, [ 6 ] compared with a $25 per share NAV at inception, despite recent NAV pressure driven by broader market spread widening and select older vintage investments. These results are supported by BCRED’s focus on private investments, which allows us to earn a yield premium relative to public fixed income. [ 4 ] We believe this income advantage is central to BCRED’s long-term strategy and supports a return profile less correlated to daily movements in the public market.

An Attractive Environment for Private Credit

Markets have experienced heightened volatility in recent months, underscoring the value of senior secured debt at the top of the capital structure, while also creating attractive opportunities for private lenders with capital to deploy. During the quarter, the Federal Reserve raised rates for the first time since 2023, benefiting the income potential of floating rate strategies like BCRED. If base rates continue to rise, BCRED’s earnings would be expected to increase, all else equal. [ 7 ]

Elevated base rates and wider spreads have supported yields on new originations, with BXCI North America Direct Lending deals in Q3’26 pricing at an approximately 25-50bps premium to year-end 2025 deals, [ 8 ] while conservative loan-to-values and strong lender protections offer meaningful risk mitigation. Institutional investors are recognizing these favorable conditions, with fundraising for institutional U.S. direct lending funds 45% higher over the last twelve months compared with the prior year period. [ 9 ] This lending environment is supported by resilient U.S. economic growth and healthy corporate earnings, consistent with the sentiment we are seeing across Blackstone’s portfolio.

While broader M&A activity remains modest amid geopolitical concerns and elevated rates, scaled private lenders can continue to source opportunities and build pipelines. Year-to-date through the end of Q3’26, BCRED has deployed over $8B, primarily into first-lien senior secured investments. In October, BXCI co-led a $5B debt financing for Waymo, an autonomous driving technology company, to support the expansion of its fleet and infrastructure. [ 10 ] The deal was priced at SOFR + 525bps with an implied loan-to-value of only ~4%, which we believe represents attractive terms given Waymo’s competitive positioning.

Strong Foundation Built on Fundamentals

We believe BCRED is navigating this environment from a position of strength. This quarter, we continued to see broad-based growth across BCRED’s portfolio, with average portfolio company EBITDA increasing 11% year-over-year [ 11 ] and software companies continuing to deliver solid earnings growth on average. [ 12 ] Interest coverage is meaningful at 2.3x [ 13 ] and would remain above 2.0x if base rates were to increase by 100bps, all else equal. [ 14 ]

BCRED’s portfolio has already been tested through one of the most rapid rate hike cycles in decades, as the Federal Reserve increased rates from near zero to above 5% between 2022 and 2023. By the end of this period, in Q4’23, BCRED’s portfolio companies on average had an interest coverage of 1.7x, [ 13 ] while still experiencing healthy growth. [ 11 ] We believe BCRED is well-positioned for this cycle, with the majority of BCRED investments either underwritten at, or already having adjusted to, rates above current levels.

In our view, these fundamentals reflect BCRED’s intentional portfolio construction. At quarter-end, senior secured debt represented 97% of debt investments, [ 15 ] with an average loan-to-value of 41% at underwrite and significant implied equity cushion. [ 16 ] The portfolio has broad exposure to 629 companies in over 50 industries, with average issuer EBITDA of $280M, [ 17 ] more than 2.5x the private credit market average. [ 18 ]

BCRED’s income quality remains strong, with the majority of investment income generated from cash interest. Payment-in-kind (PIK) income was modest at 5.9% of total investment income in Q3’26, down from 7.8% in Q4’25. [ 19 ] At quarter-end, non-accruals were 2.7% at cost and 1.7% [ 20 ] at fair value, but remain below the long-term historical average across the BDC industry. [ 21 ]

Liquidity: A Key Strength

At quarter-end, BCRED had over $17B of available liquidity, [ 22 ] including unrestricted cash and borrowing capacity, along with the lowest cost of debt and G&A expense among non-traded peers. [ 23 ][ 24 ] Q3’26 repurchase requests largely reflected carryover from Q2’26, [ 25 ] and BCRED continued to provide meaningful liquidity, fulfilling approximately 75% of requested capital within approximately 90 days for investors who sought liquidity in Q2’26 and Q3’26. [ 26 ] BCRED is one of two non-traded BDCs with the highest combined ratings and outlook from Moody’s and S&P, [ 27 ] with recent reports highlighting its significant liquidity, low leverage, and portfolio quality.

Repayment activity has provided additional liquidity and investment flexibility. During Q3’26, BCRED had $3.2B of loan repayments alongside nearly $750M of subscriptions, together representing approximately 190% of the NAV of shares repurchased. [ 28 ] Year-to-date repayments totaled $8.5B, equivalent to an annualized rate of approximately 14%, [ 29 ] and together with conservative leverage of 0.85x, [ 30 ] have supported ample capacity to deploy into new investments.

Repayments at par support income generation and NAV, particularly for investments that may have experienced valuation pressure. This dynamic was evident in loans to SelectQuote and Colony Hardware, which repaid at par this year following trough marks of 88 and 92, respectively. [ 31 ] We believe long-term portfolio performance is best evaluated by considering both changes in fair value and realized credit outcomes over time.

Active Credit Management

In an environment with increasing dispersion, it is particularly important for investors to partner with a manager with a long track record of managing risk across cycles. BXCI’s approach begins with disciplined underwriting, early identification of deterioration, and proactively reflecting changing conditions in valuations. At quarter-end, the portfolio carried a weighted average mark of approximately 95, [ 32 ] in line with the leveraged loan index, [ 33 ] with nearly 80% of the portfolio experiencing stable to improving valuations. [ 34 ]

When challenges arise, we draw on active asset management and operational engagement to help drive recovery over time. If a restructuring is required, we leverage Blackstone’s nearly 40 years of private equity experience and the workout expertise of BXCI’s over 130-person Office of the CIO. BCRED’s predominantly senior secured positioning provides greater control, particularly relative to equity holders, who absorb losses first. For example, following a Q3’24 restructuring of a multi-site healthcare company, BXCI worked closely with management to improve operating performance. [ 35 ] The investment’s current mark is over 20 points above its trough mark. [ 36 ]

Looking Ahead

In our view, today’s environment is creating a more compelling deployment backdrop for private credit, with a resilient economy and higher yields on floating rate loans. We believe BCRED is well-positioned to capture opportunities ahead and we remain focused on delivering durable income and long-term value for shareholders.

Thank you for your continued trust and partnership.

Sincerely,
Blackstone Credit & Insurance Team

BCRED vs. Fixed Income Indices Return [ 1 ][ 2 ]
Since BCRED’s inception

Important Disclaimers

FOR EXISTING SHAREHOLDERS ONLY

Data is as of September 30, 2026, unless otherwise indicated. Reflects Blackstone Credit & Insurance’s (“BXCI”) views and beliefs as of the date of this material only, which is subject to change. Returns for periods greater than one year are annualized. Past performance does not predict future returns and there can be no assurance that BCRED will achieve results comparable to those of any of BXCI’s prior funds or be able to implement its strategy or achieve its investment objectives, including due to an inability to access sufficient investment opportunities. See “Use of Leverage” in the Important Disclosure Information for more information.

BCRED’s peers or peer set (“private credit peers”) includes traded business development companies (“traded BDCs” or “traded peers”) and non-traded business development companies (“non-traded BDCs” or “non-traded peers”). Traded peers include BDCs which are externally-managed with total net assets in excess of $1 billion as of December 31, 2025 (excluding Blackstone Secured Lending Fund (BXSL), which is managed by the same investment adviser as BCRED and has significant overlap in its investments with BCRED): Ares Capital Corporation (ARCC), Bain Capital Specialty Finance, Inc. (BCSF), Barings BDC, Inc. (BBDC), Blue Owl Capital Corporation (OBDC), Blue Owl Technology Finance Corp. (OTF), Carlyle Secured Lending (CGBD), FS KKR Capital Corp. (FSK), Goldman Sachs BDC, Inc. (GSBD), Golub Capital BDC, Inc. (GBDC), Kayne Anderson BDC, Inc. (KBDC), MidCap Financial Investment Corporation (MFIC), Morgan Stanley Direct Lending Fund (MSDL), New Mountain Finance Corporation (NMFC), Oaktree Specialty Lending Corporation (OCSL), PennantPark Floating Rate Capital (PFLT), Prospect Capital Corporation (PSEC), and Sixth Street Specialty Lending, Inc. (TSLX). Non-traded peers include BDCs which are externally-managed, had effective registration statements as of 2025 and were broadly distributed, have broad exposure across industries in their investments and are not sector-focused, and had net asset values in excess of $4 billion as of December 31, 2025: Apollo Debt Solutions BDC (ADS), Ares Strategic Income Fund (ASIF), Blue Owl Credit Income Corp. (OCIC), Goldman Sachs Private Credit Corp (GSCRED), Golub Capital Private Credit Fund (GCRED), HPS Corporate Lending Fund (HLEND), and Oaktree Strategic Credit Fund (OSCF).

Important Disclosure Information
Index Definitions
As of September 30, 2026. Inception date for Class I and Class S shares: January 7, 2021. Inception date for Class D shares: May 1, 2021. Total Net Return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (assuming dividends and distributions are reinvested) divided by the beginning NAV per share. Returns greater than one year are annualized. Inception-to-date (“ITD”) total return for Class S (no/with upfront placement fee): 8.0%/7.3%. ITD total return for Class D (no/with upfront placement fee): 8.3%/8.0%. Quarter-to-date (“QTD”) total return for Class S (no/with upfront placement fee): 1.5%/-2.1%, Class D (no/with upfront placement fee): 1.6%/0.1%. All returns shown are derived from unaudited financial information and are net of all BCRED expenses, including general and administrative expenses, transaction related expenses, management fees, incentive fees, and share class specific fees, but exclude the impact of early repurchase deductions on the repurchase of shares that have been outstanding for less than one year. Past performance does not predict future returns. Class S and Class D listed as (With Upfront Placement Fee or Brokerage Commissions) reflect the returns after the maximum upfront placement fees. Class S and Class D listed as (No Upfront Placement Fee or Brokerage Commissions) exclude upfront placement fees. Class I does not have upfront placement fees. The returns have been prepared using unaudited data and valuations of the underlying investments in BCRED’s portfolio, which are estimates of fair value and form the basis for BCRED’s NAV. Valuations based upon unaudited reports from the underlying investments may be subject to later adjustments, may not correspond to realized value and may not accurately reflect the price at which assets could be liquidated.
Source: Morningstar, BXCI as of September 30, 2026. “Leveraged Loans” is represented by the Morningstar LSTA US Leveraged Loan Index. “High Yield Bonds” is represented by the Bloomberg US Corporate High Yield Index. “Investment Grade Bonds” is represented by the Bloomberg US Aggregate Bond Index. There can be no assurances that any of the trends described throughout this letter will continue or will not reverse. Please see “Index Definitions” and “Index Comparison” at the end of this letter for more information.
Annualized Distribution Rate for Class I reflects September’s distribution annualized and divided by last reported NAV from August. Distributions are not guaranteed. Past performance does not predict future returns. Distributions have been and may in the future be funded through sources other than net investment income. See BCRED’s prospectus. Please visit the Shareholders page on BCRED’s website for notices regarding distributions subject to Section 19(a) of the Investment Company Act of 1940. We cannot guarantee that we will make distributions, and if we do we may fund such distributions from sources other than cash flow from operations, including the sale of assets, borrowings, return of capital, or offering proceeds, and although we generally expect to fund distributions from cash flow from operations, we have not established limits on the amounts we may pay from such sources. As of September 30, 2026, 100% of inception-to-date distributions were funded from net investment income or realized short-term capital gains, rather than a return of capital. A return of capital (1) is a return of the original amount invested, (2) does not constitute earnings or profits and (3) will have the effect of reducing the basis such that when a shareholder sells its shares the sale may be subject to taxes even if the shares are sold for less than the original purchase price. Distributions may also be funded in significant part, directly or indirectly, from temporary waivers or expense reimbursements borne by Blackstone Credit BDC Advisors LLC (the “Sub-Adviser”) or its affiliates, that may be subject to reimbursement to the Sub-Adviser or its affiliates. The repayment of any amounts owed to our affiliates will reduce future distributions to which you would otherwise be entitled. Annualized Distribution Rates for other share classes for September are as follows: 8.3% for Class S and 8.9% for Class D.
Source: Morningstar, as of September 30, 2026. “Leveraged Loans” is represented by the 7.3% yield of loans in the Morningstar LSTA US Leveraged Loan Index.
As of September 30, 2026. Distributions have been and may in the future be funded through sources other than net investment income. See BCRED’s prospectus. Please visit the Shareholders page on BCRED’s website for notices regarding distributions subject to Section 19(a) of the Investment Company Act of 1940. Please see footnote 3 for further information.
As of September 30, 2026. $37.38 per share reflects current NAV of $23.51 per share plus cumulative distributions paid per share since inception.
Based on interest rate sensitivity and for purposes of the sensitivity analysis assumes no changes in BCRED’s investment and borrowing structure. The analysis considers interest rate floors and ceilings applicable to floating rate instruments and excludes the impact of incentive fees. Actual results may differ.
Based on BXCI North America Direct Lending commitment data (new deals and add-ons, including delayed-draw and revolving commitments) for commitments made in Q4’25 (October 1 – December 31, 2025) compared with Q3’26 (July 1 – September 30, 2026). Spreads are weighted by BXCI commitment amount. Excludes second-lien securities, commitments to restructured issuers, liquidity and covenant-relief amendments, and certain transactions not classified as direct lending. Information is for illustrative purposes only and is not indicative of BCRED’s performance or portfolio.
Source: Preqin as of September 30, 2026. Includes closed-end direct lending funds and excludes blended and opportunistic debt funds.
This investment is presented for illustrative purposes only, and is not representative of all BXCI investments or investments generally, and does not constitute investment advice or a recommendation regarding past investments. There can be no assurance that any Blackstone fund or investment will achieve its investment objectives or avoid significant losses. Represents BXCI’s most recent publicly announced direct lending investment in a company’s inaugural debt financing.
Represents LTM EBITDA Growth year-over-year where data is available and relevant. Includes all debt investments for which fair value is determined by the Board in conjunction with a third-party valuation firm and excludes both asset-based investments and quoted investments. BCRED amounts are weighted on fair market value of each respective investment. BCRED amounts were derived from portfolio company financial statements that are continuously received and may be updated; accordingly, growth figures may be based on prior period EBITDA amounts that were not available or, in the case of recently funded deals, not applicable in the prior period. Third-party figures (and corresponding BCRED amounts) have not been independently verified by BCRED and may reflect a normalized or adjusted amount. Accordingly, BCRED makes no representation or warranty in respect of this information. EBITDA is a non-GAAP financial measure. For a particular portfolio company, EBITDA is generally defined as net income before net interest expense, income tax expense, depreciation, and amortization over the LTM. EBITDA growth year-over-year may reflect some inorganic growth due to mergers and acquisitions (M&A).
As of September 30, 2026. Software portfolio statistics include all debt investments within BCRED’s software portfolio (as classified under the GICS Industry level) for which fair value is determined by the Board in conjunction with a third-party valuation firm and exclude both asset-based investments and quoted investments. For BCRED’s software portfolio, year-over-year LTM EBITDA growth was low double-digits, average LTM EBITDA was approximately $400 million, average enterprise value was over $4.5 billion, and average loan-to-value at underwrite was 37%. Each statistic is calculated using the same methodology as the corresponding BCRED portfolio statistic. Please refer to footnotes 11 (LTM EBITDA growth), 17 (LTM EBITDA), 38 (enterprise value) and 16 (loan-to-value) for additional information. EBITDA is a non-GAAP financial measure. Amounts were derived from portfolio company financial statements, have not been independently verified by BCRED, and may reflect a normalized or adjusted amount. Accordingly, BCRED makes no representation or warranty in respect of this information. Enterprise value is presented for illustrative purposes and does not reflect actual realized proceeds to BCRED or to the equity sponsor or the company, and there can be no assurance that realized proceeds received by Blackstone or any investor in a Blackstone fund will be increased as a result.
Interest coverage ratio (“ICR”) is estimated as the ratio of average LTM EBITDA to cash interest paid over the last 12 months for each respective portfolio company. Includes all debt investments (excluding ARR loans) for which fair value is determined by the Board in conjunction with a third-party valuation firm and excludes both asset-based investments and quoted investments. Amounts derived from the most recently available portfolio company financial statements, have not been independently verified by BCRED, may reflect a normalized or adjusted amount, and are generally about 90 days in arrears. Accordingly, BCRED makes no representation or warranty in respect of this information. EBITDA is a non-GAAP financial measure. For a particular portfolio company, LTM EBITDA is generally defined as net income before net interest expense, income tax expense, depreciation and amortization over the preceding 12-month period. Currency fluctuations may have an adverse effect on the value, price or income and costs of our portfolio companies and investments which may increase or decrease as a result of changes in exchange rates. As of September 30, 2026, approximately 8% of the above defined debt investments (including ARR loans) and approximately 7% of the above defined debt investments (excluding ARR loans) have less than 1.0x interest coverage ratio. ICR based on debt investments within BCRED’s software sector (as classified under the GICS Industry level) is 2.4x as of September 30, 2026.
For purposes of the sensitivity analysis, interest expense is adjusted at the portfolio company level based on outstanding debt and the applicable all-in interest rate. The analysis assumes base rates increase by 100 basis points, with LTM EBITDA, outstanding debt balances and applicable credit spreads held constant across scenarios. Actual results may differ.
As a percentage of BCRED’s investment portfolio excluding equity investments in unconsolidated joint ventures. Floating rate investments exclude investments on non-accrual.
At the time of underwrite for each investment in BCRED’s debt portfolio. Average loan-to-value represents the net ratio of loan-to-value for each portfolio company, weighted based on the fair value of total applicable debt investments. Includes all debt investments for which fair value is determined by the Board of Trustees in conjunction with a third-party valuation firm and excludes quoted investments and asset-based investments. Loan-to-value at underwrite is calculated as the net debt through each respective loan tranche divided by the estimated enterprise value of the portfolio company at the time of underwrite.
As of September 30, 2026. Average last-twelve-month (“LTM”) EBITDA includes all debt investments for which fair value is determined by BCRED’s Board in conjunction with a third-party valuation firm and excludes both asset-based investments and quoted investments. EBITDA is a non-GAAP financial measure. For a particular portfolio company, LTM EBITDA is generally defined as net income before net interest expense, income tax expense, depreciation and amortization over the preceding twelve-month period. Amounts are weighted on fair market value of each respective investment. Amounts were derived from the most recently available portfolio company financial statements (which are generally one quarter in arrears), have not been independently verified by BCRED, and may reflect a normalized or adjusted amount. Accordingly, BCRED makes no representation or warranty in respect of this information. As of September 30, 2026, the breakdown of BCRED’s portfolio company LTM EBITDA within the above defined debt portfolio is as follows: 4% less than $50 million, 21% between $50 to $100 million and 74% greater than $100 million based on fair market value. Amounts may not sum due to rounding. As of September 30, 2026, LTM EBITDA margin for these debt investments is 30%. EBITDA margin is the ratio of EBITDA-to-revenue.
Private credit market exhibited average LTM EBITDA of $104 million, based on issuer companies of loans in the Lincoln International Private Market Database as of June 30, 2026, which is the latest available data. The “Lincoln International Private Market Database,” compiled by the Lincoln Valuations & Opinions Group (“VOG”), is a quarterly compilation of over 4,750 portfolio companies from a wide assortment of private equity investors and non-bank lenders. Most of these companies are highly levered with debt financing provided via the direct lending market and in many instances, Lincoln estimates the fair value of at least one senior debt security in the portfolio companies’ capital structures. In assessing the data, VOG relies on commonly accepted valuation methodologies and each valuation analysis is unique and conforms to fair value accounting principles. The analyses are then vetted by auditors, fund managers and their board of directors, as well as other regulators. © 2026 Lincoln Partners Advisors LLC. All rights reserved. Used with permission. Third-party use is at user’s own risk.
Payment-in-kind (“PIK”) income as a percentage of total investment income is calculated as PIK income derived from interest and dividends during the three months ended September 30, 2026, divided by total investment income for the same period.
As of September 30, 2026, as assessed through the date of this letter. Calculated as the amortized cost or fair value of loans on non-accrual divided by total amortized cost or fair value of the BCRED investment portfolio excluding investments in joint ventures. Loans are placed on non-accrual status when there is reasonable doubt whether principal or interest will be collected in full. Accrued interest is generally reversed when a loan is placed on non-accrual status. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management’s judgment, are likely to remain current. If a loan on non-accrual status is extinguished in a restructuring, management will determine, in its judgment, the accrual status of the new loan received in the restructuring.
Source: Raymond James as of August 31, 2026. Historical average of 3.3% at cost reflects average of 115 current and former traded and non-traded BDCs tracked by Raymond James from Q1’06 through Q2’26. For purposes of this disclosure, ”BDC industry” refers to the BDCs tracked by Raymond James.
As of September 30, 2026. Available liquidity is composed of cash and cash equivalents, excluding restricted cash, plus the amount available to draw upon across all revolving credit facilities, net of limitations related to each respective credit facility’s borrowing base.
For the quarter ended June 30, 2026. BCRED’s weighted average all-in cost of debt is 5.7% and calculated based on annualized all-in cost of debt incurred in Q2’26 (including unused fees, amortization of debt issuance costs (including premiums and discounts), amortization of deferred financing costs, and the impact of hedge accounting) divided by weighted average principal of debt outstanding during the same period. Non-traded peers represented by the non-traded peer average of 6.1% reflecting annualized Q2’26 all-in cost of debt for the quarter ended June 30, 2026, weighted by total NAV. All-in cost of debt calculated as interest expense divided by average debt principal outstanding for the quarter ended June 30, 2026.
For the quarter ended June 30, 2026. BCRED’s gross annualized G&A expense ratio was 0.2% calculated as annualized gross G&A expenses incurred in Q2’26 divided by weighted average NAV for the quarter. Non-traded peers represented by the non-traded peer average of 0.3%. This is calculated based on annualized Q2’26 gross G&A expenses as a percentage of average NAV for the quarter ended June 30, 2026, weighted by total NAV. Gross G&A expenses exclude interest expense, management and incentive fees, excise and other tax expense, distribution costs, and the impact of expense support and recoupment, if any. BCRED gross G&A expenses include professional fees, Board of Trustees fees, administrative service expenses, organization costs, other general and administrative expenses, and amortization of continuous offering costs.
Assumes that a significant portion of repurchase requests not fulfilled in Q2’26 ($2.3 billion unfulfilled requests) were re-submitted in Q3’26 ($4.3 billion submitted).
Assumes shareholders seeking liquidity requested repurchase of 100% of their shares in each of Q2’26 and Q3’26. Calculated based on final Q2’26 and Q3’26 repurchase amounts. This reflects the period from the payment date for Q2’26 repurchases to the payment date for Q3’26 repurchases.
As of November 2, 2026. BCRED has an investment grade credit rating of BBB (high) / stable outlook from DBRS Morningstar, provided on December 1, 2023, and an investment grade credit rating of Baa2 / stable from Moody’s, provided on September 23, 2024, and an investment grade credit rating of BBB- / stable from S&P, provided on October 16, 2026. The majority of the underlying private credit loans within BCRED are not rated. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. Blackstone provides compensation directly to DBRS Morningstar, Moody’s and S&P for its evaluation of BCRED. Credit ratings do not address the suitability of securities or the suitability of securities for investment purposes and should not be relied on as investment advice.
Loan repayments and subscriptions are presented to illustrate certain sources of liquidity for the Fund during the quarter. Such amounts do not directly offset or net against repurchases on a dollar-for-dollar basis.
Annualized repayment rate is calculated as the repayments during the nine months ended September 30, 2026, annualized, and divided by the average total investments at fair market value for the same period.
As of September 30, 2026. Debt-to-equity ratio represents the ratio of total principal of outstanding debt to net assets.
These investments are presented for illustrative purposes only, are not representative of all BXCI investments or investments generally, and do not constitute investment advice or a recommendation regarding past investments. The outcomes described should not be viewed as representative of all BXCI investments. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid significant losses. SelectQuote reflects trough mark on term loan only. The investments highlighted were selected to illustrate movements in valuation marks over the life of an investment.
Average mark of debt investments adjusted for restructured investments is 94.6% as of September 30, 2026. This is based on the sum of a) the current fair value of BCRED’s debt investment portfolio (excluding equity investments and investments in joint ventures) and b) the current fair value of equity investments received as part of a restructure, divided by the sum of i) the current outstanding par value of BCRED’s debt investment portfolio (excluding equity investments and investments in joint ventures) and ii) the par value of debt investments extinguished in connection with the restructure of investments over the life of BCRED.  Average mark based on BCRED’s debt investment portfolio (excluding equity investments and investments in joint ventures), without adjusting for restructured investments, calculated as the total fair value of debt investments divided by total current outstanding par value, is 95.8% as of September 30, 2026.
Source: Morningstar, BXCI as of September 30, 2026. Represented by Morningstar LSTA US Leveraged Loan Index.
Represents the percentage of the total cost of investments, excluding investments in unconsolidated joint ventures, for which the mark adjusted for restructured investments as of September 30, 2026 was up or flat relative to the prior quarter end. Please refer to footnote 32 for information on adjusted mark methodology.
The investment highlighted was selected to demonstrate aspects of BXCI’s asset management activities, including monitoring, amendments, and restructurings involving underperforming companies.
Reflects the investment’s adjusted mark as of September 30, 2026 compared with its lowest quarter-end adjusted mark. The adjusted mark is calculated as the fair value of BCRED’s remaining investments in the company divided by the sum of (i) the outstanding par value of BCRED’s debt investment in the company and (ii) the par value of debt extinguished in connection with the restructuring.