Blackstone Value Creation
We strive to be more than a capital provider, but a capital partner, equipping borrowers with tools – from procurement to cybersecurity to operations – to help them unlock their potential.
All information is as of March 31, 2024, unless otherwise indicated. Neither this video nor any of the information contained herein constitutes an offer to sell, or a solicitation of an offer to buy, any security or instrument in or to participate in any trading strategy with any Blackstone fund or other investment vehicle. Investments presented herein are not representative of all investments of a given type or of investments generally. The information herein must be viewed in conjunction with the prospectus of Blackstone Private Credit Fund (“BCRED” or the “Fund”) in order to understand fully all of the implications and risks of the offering to which this sales and advertising literature relates. A copy of the prospectus must be made available to you in connection with this offering, and is available at www.BCRED.com.
Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any other state securities regulator has approved or disapproved of these securities or determined if the prospectus is truthful or complete. Any representation to the contrary is unlawful. Past performance does not predict future returns and there is no assurance that any Blackstone fund will achieve its objectives or avoid significant losses. Statements contained in this video that are not facts, including statements regarding trends, market conditions and the expertise or experience of Blackstone, are based on current expectations, estimates, opinions, and/or beliefs of Blackstone. Such statements are not facts and involve known and unknown risks, uncertainties, and other factors. This video may contain forward‐looking statements; such statements are subject to various risks and uncertainties. Due to various risks and uncertainties, actual events or results or the actual performance of any investments made in this industry may differ materially from those reflected or contemplated in any forward‐looking statements made in the video. For information about Blackstone’s business, including risks and financial information, please refer to our most recent Annual Report on Form 10‐K filed with the Securities and Exchange Commission http://ir.blackstone.com.
The opinions expressed herein reflect the current opinions of Blackstone as of the date of the recording, and should not be construed as research or investment advice. There can be no assurance that views and opinions expressed in this recording will come to pass and it is subject to change. There can be no assurances that any of the trends described herein will continue or will not reverse. This video is owned by Blackstone and may not be downloaded, recorded or reused in any way without Blackstone’s express consent. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of, future events or results.
Blackstone Securities Partners L.P., Dealer Manager / Member FINRA
1. Numbers presented are since inception of the Value Creation Program in 2016. Data presented is based on internal Blackstone data recorded and not from financial statements of portfolio companies. Represents total contract value, including multi-year contracts.
2. Numbers presented are since inception of the Value Creation Program in 2016, and data presented is based on internal Blackstone data recorded and not from financial statements of portfolio companies. Represents the sum of (a) estimated identified total cost reduction at the time cost is benchmarked with portfolio companies multiplied by the average enterprise value multiple across the portfolio, by finding the mean of the enterprise values at time of BXCI’s initial investments, and (b) total revenue from introductions across Blackstone portfolio companies multiplied by EBITDA margin and multiple at investment of the portfolio company. The number is presented for illustrative purposes and does not reflect actual realized proceeds to BXCI 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.
3. Reflects Blackstone Credit & Insurance’s views and beliefs as of the date appearing on this material only, which is subject to change. This case study is for illustrative purposes only, is not representative of all Blackstone Credit & Insurance investments and does not constitute investment advice or recommendation of past investments. The case study presented herein reflects an objective, non-performance based standard of showing a portfolio company that has engaged services of the Blackstone Credit & Insurance Value Creation Program including procurement, healthcare support and cyber security. Past performance does not predict future returns and there can be no assurance that the fund will achieve results comparable to those of any of Blackstone Credit & Insurance’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. All rights to the trademarks and/or logos listed herein belong to their respective owners and Blackstone Credit & Insurance’s use hereof does not imply any affiliation with, or endorsement by the owners of these trademarks and/or logos.
4. Reflects Blackstone Credit & Insurance’s views and beliefs as of the date appearing on this material only, which is subject to change. This case study is for illustrative purposes only, is not representative of all Blackstone Credit & Insurance investments and does not constitute investment advice or recommendation of past investments. The case study presented herein reflects an objective, non-performance based standard of showing a portfolio company that has engaged services of the Blackstone Credit & Insurance Value Creation Program including procurement and eSourcing. Past performance does not predict future returns and there can be no assurance that the fund will achieve results comparable to those of any of Blackstone Credit & Insurance’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. All rights to the trademarks and/or logos listed herein belong to their respective owners and Blackstone Credit & Insurance’s use hereof does not imply any affiliation with, or endorsement by the owners of these trademarks and/or logos.
5. As of September 30, 2023.
Blackstone Value Creation
BCRED portfolio companies have full access to BXCI’s Value Creation Program
Helping to Create Efficiencies
The Value Creation team seeks to provide portfolio companies with access to cost reduction, revenue generation and knowledge sharing opportunities
Revenue Generation
Cost Reduction
Knowledge Sharing
Revenue Generation
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Revenue Generation
Identifies revenue generation opportunities across the broader Blackstone portfolio and works directly with management teams of borrowers to drive incremental revenue
Value Creation in Action
The Blackstone Credit Value Creation team helped a BCRED portfolio company in the online consumer retail industry to drive $3M+ of incremental revenue by making 100+ introductions for this portfolio company, creating $36M total implied enterprise value. [ 3 ]
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Cost Reduction
Identifies cost reduction opportunities across a multitude of categories to drive immediate savings
Value Creation in Action
The Blackstone Value Creation team helped a BCRED portfolio company in the building products industry to identify $4M total cost reduction opportunities, creating $27M total implied enterprise value. [ 6 ]
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Knowledge Sharing
Taps into Blackstone’s intellectual capital to provide companies access to industry expertise and resources in areas such as cybersecurity and healthcare
Internal Blackstone human capital resources available to portfolio companies
100+
Critical cyber issues identified and corrected in 2024 across BXCI [ 7 ]
191
Proprietary cyber assessments completed as of 4Q24 across BXCI portfolio
59
Explore More About BCRED
Data is as of March 31, 2025, unless otherwise indicated. The case studies herein reflect an objective non-performance based standard of showing a holistic partnership through value creation program that received support through categories such as, but not limited to, introductions, cost reduction opportunities, and the Blackstone network. The above case studies are for illustrative purposes only, is not representative of all Blackstone Credit investments and does not constitute investment advice or recommendation of past investments. These examples may not be representative of all investments of a given type or of investments generally, both with respect to operating metrics and performance, and it should not be assumed that Blackstone will make comparable or equally successful investments in the future.
Important Disclosure Information
Local, regional or global events such as war (e.g., Russia/Ukraine), acts of terrorism, public health issues like pandemics or (e.g., COVID-19), recessions, or other economic, political and global macro factors and events could lead to a substantial economic downturn or recession in the U.S. and global economies and have a significant impact on the Fund and its investments. The recovery from such downturns is uncertain and may last for an extended period of time or result in significant volatility, and many of the risks discussed herein associated with an investment in the Fund may be increased.
Summary of Risk Factors
Blackstone Private Credit Fund (“BCRED”) is a non-exchange traded business development company (“BDC”) that expects to invest at least 80% of its total assets (net assets plus borrowings for investment purposes) in private credit investments (loans, bonds and other credit instruments that are issued in private offerings or issued by private companies). This investment involves a high degree of risk. You should purchase these securities only if you can afford the complete loss of your investment. You should read the prospectus carefully for a description of the risks associated with an investment in BCRED. These risks include, but are not limited to, the following:
- There is no assurance that we will achieve our investment objectives.
- This is a “blind pool” offering and thus you will not have the opportunity to evaluate our investments before we make them.
- You should not expect to be able to sell your shares regardless of how we perform.
- You should consider that you may not have access to the money you invest for an extended period of time.
- We do not intend to list our shares on any securities exchange, and we do not expect a secondary market in our shares to develop prior to any listing.
- Because you may be unable to sell your shares, you will be unable to reduce your exposure in any market downturn.
- We have implemented a share repurchase program, but only a limited number of shares will be eligible for repurchase and repurchases will be subject to available liquidity and other significant restrictions.
- An investment in our common shares is not suitable for you if you need access to the money you invest. See “Suitability Standards” and “Share Repurchase Program” in the prospectus.
- You will bear substantial fees and expenses in connection with your investment. See “Fees and Expenses” in the prospectus.
- 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. 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 Advisers (the “Adviser”) or its affiliates, that may be subject to reimbursement to the Adviser or its affiliates. The repayment of any amounts owed to our affiliates will reduce future distributions to which you would otherwise be entitled.
- We use and continue to expect to use leverage, which will magnify the potential for loss on amounts invested in us.
- We intend to invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may also be illiquid and difficult to value.
- We do not own the Blackstone name, but we are permitted to use it as part of our corporate name pursuant to the investment advisory agreement between BCRED and an affiliate of Blackstone Inc. (“Blackstone”). Use of the name by other parties or the termination of the use of the Blackstone name under the investment advisory agreement may harm our business.
Neither the Securities and Exchange Commission nor any state securities regulator has approved or disapproved of these securities or determined if the prospectus is truthful or complete. Any representation to the contrary is unlawful.
This website must be read in conjunction with the BCRED prospectus in order to fully understand all the implications and risks of an investment in BCRED. This website is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus, which must be made available to you prior to making a purchase of shares in connection with this offering and is available at https://www.bcred.com/prospectus. Prior to making an investment, investors should read the prospectus, including the “Risk Factors” section therein, which contains a discussion of the risks and uncertainties that we believe are material to our business, operating results, prospects and financial condition.
Numerical data is approximate and as of April 30, 2025, unless otherwise noted. The words “we”, “us”, and “our” refer to BCRED, unless the context requires otherwise.
Forward-Looking Statement Disclosure
Certain information contained in this communication constitutes “forward-looking statements.” These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These may include BCRED’s financial estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements regarding future performance, statements regarding economic and market trends and statements regarding identified but not yet closed investments. Such forward‐looking statements are inherently subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. BCRED believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its prospectus and annual report for the most recent fiscal year, and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or BCRED’s prospectus and other filings). Except as otherwise required by federal securities laws, BCRED undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Blackstone Securities Partners L.P. (“BSP”) is a member of FINRA and is a broker-dealer whose purpose is to distribute Blackstone managed or affiliated products. BSP provides services to its Blackstone affiliates, not to investors in its funds, strategies or other products. BSP does not make any recommendation regarding, and will not monitor, any investment. As such, when BSP presents an investment strategy or product to an investor, BSP does not collect the information necessary to determine—and BSP does not engage in a determination regarding—whether an investment in the strategy or product is in the best interests of, or is suitable for, the investor. You should exercise your own judgment and/or consult with a professional advisor to determine whether it is advisable for you to invest in any Blackstone strategy or product. Please note that BSP may not provide the kinds of financial services that you might expect from another financial intermediary, such as overseeing any brokerage or similar account. For financial advice relating to an investment in any Blackstone strategy or product, contact your own professional advisor.