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Q2 2026 Shareholder Letter

FOR EXISTING SHAREHOLDERS ONLY

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BCRED Returns and portfolio Highlights

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

9.0%

Annualized distribution rate (Class I) [ 3 ]

9.1%

Senior secured debt [ 11 ]

97%

Average loan-to-value (“LTV”) at time of underwrite [ 12 ]

41%

July 30, 2026

BCRED Q1 2026 quarterly letter - awards

Award Recognition

Dear BCRED Shareholders,

Blackstone Private Credit Fund (“BCRED” or “the Fund”) was designed as a long-term allocation for investors seeking income-oriented returns across market cycles.

Since inception in 2021, BCRED has generated a 9.0% annualized total net return (Class I), [ 1 ] outperforming leveraged loans by ~300bps over the period. [ 2 ] The Fund is also currently delivering a 9.1% annualized distribution rate (Class I), [ 3 ] representing a ~170bps yield premium relative to leveraged loans. [ 4 ]

During Q2’26, BCRED generated a 0.3% total net return (Class I) [ 1 ] with income partially offset by unrealized markdowns in the portfolio. Approximately half of the unrealized private marks for the quarter reflected broader market spread widening, while the remainder reflect underperformance across select portfolio companies. [ 5 ] While wider spreads can place pressure on unrealized marks of the existing portfolio, they may also create opportunities to deploy capital at attractive levels. NAV movements reflect point-in-time fair value marks based on the valuation of portfolio investments; realized outcomes, however, are determined over time as investments are repaid, sold, or otherwise monetized.


Portfolio Update

BCRED’s ~$78B portfolio has been constructed primarily with privately originated senior secured loans to larger, quality businesses. [ 6 ]

Our portfolio continued to demonstrate fundamental resilience, with average LTM EBITDA growth of 10% year-over-year [ 7 ] and interest coverage of 2.3x. [ 8 ] The portfolio has broad exposure across more than 650 companies in over 50 industries, with an average issuer EBITDA of $278M [ 9 ] — more than 2.5x the broader private credit market average. [ 10 ] Senior secured debt represented 97% [ 11 ] of debt investments at quarter-end, with an average loan-to-value of 41% [ 12 ] at underwrite with implied equity cushion.

The portfolio carried a weighted average mark of 95.4 [ 13 ] at quarter-end, in line with the leveraged loan index. [ 14 ] Underperforming investments are reflected in current valuations, with the bottom 5% of private debt investments marked at an average of 63.4. [ 15 ] These investments are primarily first-lien senior secured positions with an average loan-to-value of 39% [ 16 ] at the time of underwrite. At quarter-end, non-accruals were 2.2% at cost and 1.1% at fair value. [ 17 ]

BCRED predominantly invests in directly originated private assets, with only 4% of “quoted” investments. [ 18 ] Private origination is central to BCRED’s value proposition, offering enhanced lender protections, stronger documentation, and greater contractual yield generation compared to public markets.

Software represented 26% of the portfolio, a modest decrease from last quarter, and is comprised of large businesses with an average enterprise value of over $4.5B, [ 19 ][ 20 ] and average loan-to-value of 37% [ 21 ] at the time of underwrite with ~$3B implied equity cushion. [ 22 ] The majority of these companies continued to demonstrate strong fundamentals, including low double-digit average year-over-year earnings growth. [ 23 ] During the quarter we marked down select software investments due to a combination of widening spreads and company-specific fundamentals. BXCI’s Value Creation team and Blackstone’s Operating Team are actively engaged with these portfolio companies to support strategic initiatives and operational execution where needed.

Income quality remained strong, driven by investment income derived from recurring cash interest payments. Payment-in-kind (PIK) income remained modest at 5.6% of total investment income, down from 7.0% in Q1’26. [ 24 ]


Liquidity and Robust Balance Sheet

BCRED continues to benefit from a conservative balance sheet and strong liquidity profile. The Fund’s liquidity position was supported by $2.7B of loan repayments and ~$1B [ 25 ] of subscriptions, which together represented 165% of shares accepted for repurchase during the quarter. [ 26 ] At an approximately 14% annualized rate, [ 27 ] repayment activity remained healthy, supporting liquidity and redeployment into new opportunities and vintage diversification.

The Fund ended the quarter with over $17B of available liquidity (cash and amount available to borrow), [ 28 ] supported by a diversified and robust funding base, the lowest cost of debt [ 29 ] and G&A expenses [ 30 ] and the highest combined investment grade ratings and outlook by Moody’s and S&P among non-traded peers. [ 31 ]

We believe BCRED’s robust balance sheet has positioned it well to selectively capitalize on attractive new investment opportunities.


Strong Origination Opportunity

Market volatility has historically created attractive environments for disciplined direct lenders. Institutional investor demand for private credit remained strong across the market in Q2’26, with direct lending fundraising reaching a two-year quarterly high despite broader market headlines. [ 32 ] Following volatility earlier this year, spreads widened, financing markets became more selective and borrowers increasingly prioritized certainty of execution from scaled private credit providers like Blackstone.

BCRED deployed $1.8B during the quarter, primarily into first-lien senior secured investments. New portfolio company loans [ 33 ] were originated at a weighted average spread of approximately 510bps [ 34 ] and an average loan-to-value of 39% at underwrite. [ 35 ] We continue to see attractive tailwinds across thematic areas where Blackstone’s scale, resources and expertise provide distinctive access — including AI and digital infrastructure, infrastructure services, aerospace and defense, and life sciences.

Notable investments included Firmus Technologies, part of a Blackstone-led $10B senior secured financing for the AI infrastructure platform. [ 36 ] The financing is backed by take-or-pay contracts with investment grade counterparties, illustrating Blackstone’s ability to structure and lead complex financings at scale. BCRED also invested in SAM, a leading independent geospatial and inspection services business supported by rising infrastructure development demand, and Aspen Pharmacare, a scaled pharmaceutical platform in Asia-Pacific, where specialized sector expertise and global reach supported differentiated underwriting. [ 36 ]

We believe Blackstone’s integrated platform, deep sector expertise, and ability to commit capital at scale continue to support access to attractive investment opportunities.


Active Credit Management Matters

As we’ve seen, even high-quality credit portfolios will experience stress across a subset of investments over time. Long-term performance depends not on the absence of defaults, but on disciplined credit selection, rigorous underwriting, structural protections, and active management of challenged investments. Historically, direct lending has generated ~9% annualized returns, which is approximately 2x the return of the broadly syndicated loan market, despite annual credit losses of ~1%, [ 37 ] highlighting the importance of contractual income and risk mitigation.

We believe active management is fundamental to delivering long-term performance. When investments become challenged, we work directly with sponsors and management teams as we seek to maximize recovery value and drive realized outcomes. We are supported by BXCI’s dedicated asset management, restructuring and operational capabilities, as well as Blackstone’s broader platform and ~40 years of private equity experience. BXCI also integrates underwriting, portfolio management and risk oversight within our 120+ person Office of the CIO, leveraging data and insights across Blackstone’s broader ecosystem to help identify emerging risks and actively manage investments.


Looking Ahead

In our view, private credit remains well positioned as a long-term allocation for investors seeking returns driven by durable income across market cycles. Our focus remains consistent: disciplined underwriting, selective deployment, and active credit management.

BCRED’s portfolio quality, liquidity position and access to the integrated Blackstone platform provide a strong foundation for navigating evolving market conditions and supporting the Fund’s ability to deliver long-term value for shareholders.

Thank you for your continued trust and partnership.

Sincerely,
Blackstone Credit & Insurance Team

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

Bar Chart: BCRED (Class I), 9.0%; Leveraged Loans, 6.0%; High Yield Bonds, 4.5%; Investment Grade Bonds, -0.1% Bar Chart: BCRED (Class I), 9.0%; Leveraged Loans, 6.0%; High Yield Bonds, 4.5%; Investment Grade Bonds, -0.1%

Important Disclaimers

FOR EXISTING SHAREHOLDERS ONLY

Data is as of June 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 June 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): 8.1%/7.4%. ITD total return for Class D (no/with upfront placement fee): 8.3%/8.0%. Year-to-date (“YTD”) total return for Class S (no/with upfront placement fee): -0.2%/-3.7%. YTD total return for Class D (no/with upfront placement fee): 0.1%/-1.4%. Quarter-to-date (“QTD”) total return for Class S (no/with upfront placement fee): 0.1%/-3.4%, Class D no/with upfront placement fee): 0.2%/-1.3%. 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 June 30, 2026. “Leveraged Loans” is represented by 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 July’s distribution annualized and divided by last reported NAV from June. June 2026 monthly distribution rate was 10.0% for Class I, which is reflects June’s distribution annualized and divided by last reported NAV from May. 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 June 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 Rate for other share classes for July are as follows: 8.3% for Class S and 8.9% for Class D.
Source: Morningstar, as of June 30, 2026. “Leveraged Loans” is represented by the 7.4% yield of loans in the Morningstar LSTA US Leveraged Loan Index.
Attribution reflects management estimates based on market spread movements and company-specific fundamentals.
BCRED will generally invest in securities or loans rated below investment grade or not rated which should be considered to have speculative characteristics.
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).
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 June 30, 2026, approximately 7% 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 June 30, 2026.
As of June 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 June 30, 2026, the breakdown of BCRED’s portfolio company LTM EBITDA within the above defined debt portfolio is as follows: 5% less than $50 million, 20% between $50 to $100 million and 75% greater than $100 million based on fair market value. As of June 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 $106 million, based on issuer companies of loans in the Lincoln International Private Market Database as of March 31, 2026, which is 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.
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.
Average mark based on BCRED’s debt investment portfolio (excluding equity investments and investments in joint ventures).
Source: Morningstar, BXCI as of June 30, 2026. “Leveraged Loans” or “Broadly Syndicated Loan Market” is represented by Morningstar LSTA US Leveraged Loan Index.
As of June 30, 2026, the bottom 5% of BCRED’s private debt investments (defined as those debt investments classified as Level 3 marked the lowest relative to par aggregating to 5% of the total cost of Level 3 debt investments, excluding structured finance obligations) were approximately 96% first lien debt, and 100% senior secured debt at underwrite, with a 39% weighted average loan to value at underwrite and have a weighted average mark of 63.4.
At the time of underwrite for each private investment in the bottom 5% of BCRED’s 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 June 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 generally 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. Management may make exceptions to this treatment and determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.
As of June 30, 2026. “Quoted” investments are defined as Level 1 and 2 investments as a percentage of the total portfolio fair value divided by total investments at fair value excluding equity investments in unconsolidated joint ventures. For information on Level 1, 2, and 3 investments, please refer to section “Valuation of Investments” in BCRED’s prospectus.
As of June 30, 2026. Average last-twelve-month (“LTM”) LTM EBITDA was approximately $400 million and includes all debt investments within BCRED’s software portfolio (as classified under the GICS Industry level) 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 12-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.
Based on the enterprise value at close for each applicable investment. Includes 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 excludes both asset-based investments and quoted investments. Average enterprise value is weighted based on the fair value of total applicable investments as of June 30, 2026. The number 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. 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.
Average loan-to-value represents the net ratio of loan-to-value for each portfolio company in BCRED’s software portfolio (as classified under the GICS Industry level) weighted based on the fair value of total applicable investments as of June 30, 2026. Includes all debt investments within BCRED’s software portfolio 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. Loan-to-value is calculated as the total net debt through each respective loan divided by the estimated enterprise value of the portfolio company at time of underwrite. 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.
Based on the subordinated capital at close for each applicable investment. Includes 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 excludes both asset-based investments and quoted investments. Average subordinated capital is weighted based on the fair value of total applicable investments as of June 30, 2026.
Represents LTM EBITDA Growth year-over-year for BCRED’s software portfolio (as classified under the GICS Industry level) 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).
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 June 30, 2026, divided by total investment income for the same period
Includes subscriptions closed during the quarter ended June 30, 2026.
Calculated as $2.7 billion of loan repayments and approximately $1 billion  of subscriptions during Q2 2026, divided by approximately $2.2 billion of shares accepted for repurchase during the quarter. 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 three months ended June 30, 2026, annualized, and divided by the average total investments at fair market value for the same period.
As of June 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 March 31, 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 Q1’26 (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 Q1’26 all-in cost of debt for the quarter ended March 31, 2026, weighted by total NAV. All-in cost of debt calculated as interest expense divided by average debt principal outstanding for the quarter ended March 31, 2026.
For the quarter ended March 31, 2026. BCRED’s gross annualized G&A expense ratio was 0.2% calculated as annualized gross G&A expenses incurred in Q1’26 divided by weighted average NAV for the quarter. Non-traded peers represented by the non-traded peer average of a 0.3% a gross annualized G&A expense ratio. This is calculated based on annualized Q1’26 gross G&A expenses as a percentage of average NAV for the quarter ended March 31, 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.
As of June 30, 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 of Baa2 / stable from Moody’s, provided on September 23, 2024, and an investment grade credit rating of BBB-/ positive from S&P, provided on December 4, 2024. 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.
Preqin, as of June 30, 2026. Includes closed-end direct lending funds, and excludes blended and opportunistic debt funds.
Total amount deployed in private debt investments in new portfolio companies funded from April 1, 2026, to June 30, 2026 (excluding add-ons and incremental loans to existing portfolio companies, drawdowns on delayed draw term loans and revolvers committed in prior periods, and structured finance obligations) represents $241 million. On new private debt investments to new portfolio companies BXCI was a sole/lead lender of 51%. Includes all private debt investments in new portfolio companies funded from April 1, 2026, to June 30, 2026 (excluding add-ons and incremental loans to existing portfolio companies, drawdowns on delayed draw term loans and revolvers committed in prior periods, and structured finance obligations). BXCI is categorized as sole or lead lender where BXCI held 50% or more of the total facility at closing or had a “Lead Arranger” designation. In Q1’26 BXCI was a sole/lead lender of 80%.
During April 1, 2026 to June 30, 2026, private debt investments in new portfolio companies (excluding add-ons and incremental loans to existing portfolio companies and drawdowns on delayed draw term loans and revolvers committed in prior periods) were underwritten with a yield of 9.0% (on average, in Q2’26, this yield was comprised of 3.9% base rate/floor and 5.1% spread and origination fees). Yield reflects average spread and origination fees or original issue discount (“OID”) (for the purposes of this illustrative example, OID is estimated to be accreted over three years based on the expected hold period). If OID was accreted to maturity, yield on new investments in Q2’26 was 8.8%. The yield for all private deals completed during Q2’26 (including existing portfolio companies but excluding drawdowns on delayed draw term loans and revolvers committed in prior periods) was 9.1% (yield to maturity of 8.9%). For illustrative purposes only. The yields stated may not be representative of any specific investment.
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 private debt investments in new portfolio companies. 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 recently available information. Includes all private debt investments in new portfolio companies funded from April 1, 2026 to June 30, 2026 (excluding add-ons and incremental loans to existing portfolio companies, and structured finance obligations) 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. Amounts are weighted on fair market value of each respective investment. Amounts were derived from the most recently available 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.
These investments are not representative of all BXCI’s investments of a given type or of investments generally and are for illustrative purposes only. This does not constitute investment advice or a recommendation of past investments. There can be no assurance that any Blackstone fund or investment will achieve its investment objectives, implement its strategy, achieve its investment objectives, or avoid significant losses. The deals presented herein reflect BCRED’s largest deployments to existing portfolio companies during Q2’26 (SAM and Firmus) and the largest deployment to a new portfolio company during Q2’26 (Aspen). BCRED’s commitment to Firmus is $425 million, of which $321 million remained undrawn as of June 30, 2026.
As of March 31,2026. Private credit is represented by the Cliffwater Direct Lending Index. Return and credit loss is measured over the last 21 years. “Broadly Syndicated Loan Market” is represented by the Morningstar LSTA Leveraged Loan Index.