Blackstone Private Credit Fund, a non-traded business development company sponsored by private equity giant Blackstone (NYSE: BX), has declared its monthly net asset value per share for March 31, 2022.
Class I, Class S, and Class D shares had an NAV per share of $25.82 as of March 31, 2022, compared to $25.80 the previous month. Shares were originally priced at $25.00 each.
As of March 31, 2022, the fund’s aggregate NAV was $17.9 billion, the fair value of its investment portfolio was $37.8 billion, and it had $19.2 billion of debt outstanding (at principal). The average debt-to-equity leverage ratio during March 2022 was approximately 1.02 times.
This compares to the previous month when the fund’s aggregate NAV was $16.1 billion, the fair value of its investment portfolio was $35.8 billion, and it had $17.9 billion of debt outstanding (at principal). The average debt-to-equity leverage ratio during February 2022 was approximately 1.11 times.
According to the company, the fund has delivered returns of 1.39 percent year-to-date and 10.59 percent annualized inception-to-date for its Class S1 (without upfront placement fees), as of March 31, 2022. The fund continues to deliver a monthly dividend of $0.16 per Class S share, resulting in a March annualized dividend yield of 7.24 percent.
Blackstone Credit BDC Advisors LLC, the fund’s investment adviser, believes the fund’s portfolio is “well-positioned” in the current environment, which is characterized by higher inflation and rising interest rates, the company said in a filing with the Securities and Exchange Commission.
“The fund continues to focus on a large and diverse portfolio of high-quality, scaled companies that are operating in attractive and high cash flow sectors (i.e. software, technology, healthcare and professional services),” the company said. “The adviser believes these characteristics, along with a 96 percent senior secured portfolio, a low 43 percent average loan-to-value, and an average issuer EBIDTDA of $150 million, make the fund a more resilient and defensive investment in an inflationary environment.”
Blackstone Private Credit Fund is the industry’s first perpetual-life BDC and broke escrow on January 7, 2021. The fund is part of Blackstone Credit’s direct lending platform, which provides privately originated, senior secured, floating rate loans to U.S. and European middle market companies. Since inception, the BDC has raised $19.3 billion in its private and public offerings, as of April 20, 2022.
As of March 31, 2022, the fund had $27.4 billion in committed debt capacity, with 86 percent in floating rate leverage and 14 percent in unsecured fixed rate leverage based on drawn amounts. The fund’s leverage sources are in the form of a corporate revolver (3 percent), asset-based credit facilities (45 percent), unsecured bonds (34 percent), secured short term indebtedness (4 percent) and collateralized loan obligation notes (14 percent) based on drawn amounts.