Blackstone Private Credit Fund (BCRED) is strategically focused on direct lending with dynamic exposure to a range of private credit
Data as of February 28, 2023
Investments at Fair Value
Floating Rate Loans(1)
Senior Secured Debt Portfolio(2)
Average Loan to Value(3)
Blackstone led the largest unitranche financing on record, committing the entire $2.6 billion tranche in support of Thoma Bravo’s $6.6 billion acquisition of Stamps.com, the provider of e-commerce shipping software solutions. The deal was typical of Blackstone’s focus on the very large end of the market.*
Featured Portfolio Companies(5)
Top Portfolio Companies(6)
|Company Name(7)||Sector||Asset Type||Reference Rate & Spread||Fair Value (in thousands)||% of Fair Value of Investments||Details|
|The NPD Group (The NPD Group L.P.)||Software||First Lien Senior Secured||SOFR + 6.25%||$1,568,144||3.3%||View Information|
|Guidehouse (Guidehouse, Inc.)||Professional Services||First Lien Senior Secured||LIBOR + 6.25%||$1,173,723||2.4%||View Information|
|Mimecast Limited*||Software||First Lien Senior Secured||S + 5.75%||$1,073,483||2.2%||View Information|
|Medallia/F1 (Medallia, Inc.)||Software||First Lien Senior Secured||L + 6.50%||$981,451||2.0%||View Information|
|Cambium Learning Group (Cambium Learning Group, Inc.)||Diversified Consumer Services||First Lien Senior Secured||L + 5.50%||$958,418||2.0%||View Information|
|Inovalon (Inovalon Holdings Inc.)||IT Services||First Lien Senior Secured||L + 6.25%||$953,166||2.0%||View Information|
|Zendesk (Zendesk, Inc.)||Software||First Lien Senior Secured||S + 6.50%||$888,468||1.8%||View Information|
|Unified Women’s Healthcare (Unified Women’s Healthcare, LLC)||Health Care Providers & Services||First Lien Senior Secured||S + 5.25%||$881,863||1.8%||View Information|
|Stamps (Stamps.com, Inc.)||Software||First Lien Senior Secured||L + 5.75%||$832,901||1.7%||View Information|
|Mantech (Mantech International Corp.)||Professional Services||First Lien Senior Secured||S + 5.75%||$778,768||1.6%||View Information|
|Datto (Kaseya, Inc.)||Software||First Lien Senior Secured||S + 5.75%||$724,967||1.5%||View Information|
|West Monroe (West Monroe Partners LLC)||Professional Services||First Lien Senior Secured||L + 5.50%||$711,666||1.5%||View Information|
|Nintex (Nintex Topco Limited)||Software||First Lien Senior Secured||L + 6.00%||$637,116||1.3%||View Information|
|United Vet Care Holdings “UVC” (Snoopy Bidco, Inc.)||Health Care Providers & Services||First Lien Senior Secured||L + 6.00%||$600,161||1.2%||View Information|
|Prodege (Prodege International Holdings, LLC)||Internet & Direct Marketing Retail||First Lien Senior Secured||L + 5.75%||$550,464||1.1%||View Information|
|Anaplan (Anaplan, Inc.)||Software||First Lien Senior Secured||S + 6.50%||$525,823||1.1%||View Information|
|Armstrong (The Access Group)*||Software||First Lien Senior Secured||S + 5.75%||$518,613||1.1%||View Information|
|Identity Digital (Identity Digital Inc.)||Internet & Direct Marketing Retail||First Lien Senior Secured||S + 6.00%||$506,377||1.1%||View Information|
|Smile Doctors (Smile Doctors, LLC)||Health Care Providers & Services||First Lien Senior Secured||L + 5.75%||$485,200||1.0%||View Information|
|Informa PLC (Caerus, Inc.)||Health Care Technology||First Lien Senior Secured||S + 5.50%||$479,466||1.0%||View Information|
*Note: Investment is partially funded in GBP and par amounts reflect local currency for the tranche that is denominated in foreign currency
BCRED Literature and Resources
Get started with BCRED
*Private Debt Investor (PDI) selected award winners by researching news sources to compile a list of finalists, vetting those finalists and soliciting votes from readers. The Adviser or its affiliates have not investigated and does not know the makeup of voters. A different set of voters may have achieved different results. The Adviser does not know whether it has been rated by this or any other third party in any way that would conflict with these awards. There may be other categories for which the Adviser, its funds or its portfolio companies were nominated but not awarded. The awards may not be representative of a particular investor’s experience or the future performance of any of fund or transaction of the Adviser. There is no guarantee that similar awards will be obtained by the Adviser with respect to existing or future funds or transactions. This information is provided solely for informational purposes. It should not be relied upon as any indication of future performance of BCRED or of the Adviser and any of its funds or portfolio companies.
- As a percentage of debt investments in BCRED’s portfolio, which represents 98% of BCRED’s investments excluding BCRED’s equity investments in joint ventures.
- Excludes BCRED’s equity investments in joint ventures which have similar underlying qualities.
- As of December 31, 2022. Includes all private debt investments for which fair value is determined by BCRED’s Board of Trustees in conjunction with a third-party valuation firm and excludes quoted assets. 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 BCRED private debt investments. Loan-to-value is calculated as the current total net debt through each respective loan tranche divided by the estimated enterprise value of the portfolio company as of the most recent quarter end. See BCRED’s prospectus.
- Measured as the fair market value of investments for each category against the total fair market value of all investments. Totals may not sum due to rounding. BCRED’s investments in Joint Ventures are excluded from the industry top 10.
- Represents the ten case studies currently shown in the BCRED Overview Presentation. Please refer to the Important Disclosure Information and Risk Factors therein for important information.
- All figures presented are as of February 28, 2023, unless otherwise indicated. Includes only data for BCRED’s twenty (20) largest portfolio companies based on the fair market value of investments for each portfolio company against the total fair market value of all investments, but excludes BCRED’s investments in Joint Ventures (including Joint Ventures that would otherwise be among the largest investments). Totals may not sum due to rounding.
- There can be no assurance that any investments will close on the terms of such commitments or at all.
Important Disclosure Information
Certain countries have been susceptible to epidemics or pandemics, most recently Covid-19. The outbreak of such epidemics or pandemics, together with any resulting restrictions on travel or quarantines imposed, has had and will likely continue to have a negative impact on the economy and business activity globally (including in the countries in which BCRED invests), and thereby is expected to adversely affect the performance of BCRED’s investments. Furthermore, the rapid development of epidemics or pandemics could preclude prediction as to their ultimate adverse impact on economic and market conditions, and, as a result, present material uncertainty and risk with respect to BCRED and the performance of its investments or operations.
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:
- We have limited prior operating history and 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 Advisors LLC (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. (together with its affiliates, “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 www.BCRED.com. 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 February 28, 2023, 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” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. 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,” “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 uncertain and there are or may 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.
Index Definitions. The Cliffwater Direct Lending Index (CDLI) seeks to measure the unlevered, gross of fee performance of U.S. middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of Business Development Companies (BDCs), including both exchange-traded and unlisted BDCs, subject to certain eligibility requirements. Morningstar LSTA US Leveraged Loan Index is a market value-weighted index designed to measure the performance of the US leveraged loan market based upon market weightings, spreads and interest payments. Bloomberg US Corporate High Yield Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. Index Definitions. The Cliffwater Direct Lending Index (CDLI) seeks to measure the unlevered, gross of fee performance of U.S. middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of Business Development Companies (BDCs), including both exchange-traded and unlisted BDCs, subject to certain eligibility requirements. Morningstar LSTA US Leveraged Loan Index is a market value-weighted index designed to measure the performance of the US leveraged loan market based upon market weightings, spreads and interest payments. Bloomberg US Corporate High Yield Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. Bloomberg US Treasury Index is a rules-based, market-value weighted index engineered to measure the performance and characteristics of fixed rate coupon US Treasuries which have a maturity greater than 12 months. To be included in the index a security must have a minimum par amount of $1 billion. Bloomberg US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. Bloomberg US Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. is a rules-based, market-value weighted index engineered to measure the performance and characteristics of fixed rate coupon US Treasuries which have a maturity greater than 12 months. To be included in the index a security must have a minimum par amount of $1 billion. Bloomberg US Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. Bloomberg US Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.
The volatility and risk profile of the indices presented in this document is likely to be materially different from that of the Fund. In addition, the indices employ different investment guidelines and criteria than the Fund and do not employ leverage; as a result, the holdings in the Fund and the liquidity of such holdings may differ significantly from the securities that comprise the indices. The indices are not subject to fees or expenses and it may not be possible to invest in the indices. A summary of the investment guidelines for the indices presented are available upon request.