Blackstone Private Credit Fund Equity Raise Surges in Third Quarter

Blackstone’s (NYSE: BX) nearly $50 billion non-traded business development company has raised $2.4 billion thus far through the third quarter, up more than 30% over the entire second quarter, according to a letter to investors.

Blackstone Private Credit Fund also reported that a 10.6% current annualized distribution yield based on the July 31, 2023 net asset value for the company’s Class I Common Shares.

“BCRED continues to invest into what we believe is a very attractive market opportunity for private credit,” the company stated in the letter. “In addition, we believe BCRED’s focus on senior secured loans, at the top of the capital structure, to high quality businesses in historically resilient sectors like software, healthcare providers & services and professional services, offers the potential for protection during periods of market uncertainty.”

The company says third quarter repurchases are estimated to be approximately 2.0% of outstanding shares as of June 30, 2023, which are at the lowest level since the second quarter of 2022. Blackstone Private Credit Fund says it will honor all redemption requests for the latest quarterly repurchase period, which ended Aug. 31, 2023.

The company plans to disclose the final dollar value of repurchases in October (after determining Sept. 30, 2023 net asset value) as part of BCRED’s ordinary course filings.

As The DI Wire previously reported in August 2023, BCRED announced an increase to its regular monthly distribution from $0.2100 per share to $0.2200 per share.

As of June 30, 2023, the fund’s aggregate NAV was $23.8 billion, the fair value of its investment portfolio was $47.7 billion, and it had $24.4 billion of debt outstanding (at principal). The fund has raised approximately $30.5 billion in equity since inception.

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