Blackstone Private Credit Fund Sees Income Rise, NAV Dip

TL;DR

**Blackstone Private Credit Fund is growing its asset base and income, but the slight NAV dip suggests caution is warranted for new money.**

AI Summary

Blackstone Private Credit Fund reported a net increase in net assets from operations of $997.7 million for the three months ended June 30, 2025, a slight increase from $918.6 million in the same period last year. Total investment income rose to $1.84 billion for the quarter, up from $1.64 billion in Q2 2024, driven primarily by a significant increase in interest income from non-controlled/non-affiliated investments, reaching $1.65 billion. Expenses also increased, with interest expense climbing to $478.0 million from $446.2 million, and management fees rising to $138.8 million from $104.3 million. The fund experienced a net change in unrealized appreciation of $78.9 million, a positive shift compared to $16.9 million in Q2 2024, but also a net realized loss of $113.7 million, worsening from a $14.1 million loss in the prior year. Net assets grew to $44.32 billion as of June 30, 2025, from $38.86 billion at December 31, 2024, reflecting strong capital inflows from share transactions, which contributed $4.23 billion for Class I shares over six months. The net asset value per share for all classes decreased slightly to $25.17 from $25.42.

Why It Matters

This 10-Q reveals Blackstone Private Credit Fund's continued growth in investment income and net assets, signaling robust demand for private credit. For investors, the slight decrease in NAV per share to $25.17 from $25.42 warrants attention, despite overall asset growth. The competitive landscape for private credit remains intense, and Blackstone's ability to generate substantial interest income, even with rising expenses, demonstrates its market position. Employees benefit from the fund's expansion, while customers of portfolio companies gain access to crucial financing. The broader market watches private credit for signs of economic health and alternative financing trends.

Risk Assessment

Risk Level: medium — The fund exhibits a medium risk level due to significant unrealized losses on investments and derivatives, totaling a net change in unrealized depreciation of $128.5 million for the six months ended June 30, 2025. Additionally, the net realized loss on investments and derivatives was $181.0 million for the same period, indicating potential volatility in asset valuations and investment performance.

Analyst Insight

Investors should closely monitor the fund's net asset value per share and the trends in unrealized gains/losses, as the slight decline in NAV to $25.17 and significant realized losses suggest potential valuation pressures. While investment income is strong, the increasing expenses and share repurchases indicate a need for careful due diligence on the fund's long-term profitability and liquidity management.

Financial Highlights

debt To Equity

0.67

revenue

$1.84B

operating Margin

N/A%

total Assets

$76.71B

total Debt

$29.88B

net Income

$997.7M

eps

$25.17

gross Margin

N/A%

cash Position

$1.98B

revenue Growth

+12.2%

Revenue Breakdown

Key Numbers

• $1.84B — Total Investment Income (Increased from $1.64B in Q2 2024, showing strong revenue growth.)
• $997.7M — Net Increase in Net Assets from Operations (Up from $918.6M in Q2 2024, indicating operational improvement.)
• $44.32B — Total Net Assets (Increased from $38.86B at year-end 2024, reflecting asset growth.)
• $25.17 — Net Asset Value Per Share (Slightly decreased from $25.42 at year-end 2024.)
• $113.7M — Net Realized Loss (Worsened from a $14.1M loss in Q2 2024, impacting profitability.)
• $128.5M — Net Change in Unrealized Depreciation (For the six months ended June 30, 2025, indicating valuation challenges.)
• $1.10B — Dividends Paid in Cash (Increased from $818.1M in the prior year, showing higher cash distributions.)
• $1.11B — Repurchased Shares Paid (Increased from $1.09B in the prior year, indicating active share repurchase program.)

Key Players & Entities

• Blackstone Private Credit Fund (company) — Registrant
• Blackstone Private Credit Strategies LLC (company) — Adviser
• Blackstone Credit BDC Advisors LLC (company) — Sub-Adviser
• SEC (regulator) — United States Securities and Exchange Commission
• $997,715 (dollar_amount) — Net increase in net assets from operations for Q2 2025
• $1,843,807 (dollar_amount) — Total investment income for Q2 2025
• $44,318,698 (dollar_amount) — Total net assets as of June 30, 2025
• $25.17 (dollar_amount) — Net asset value per share as of June 30, 2025
• $113,736 (dollar_amount) — Net realized loss for Q2 2025
• $128,496 (dollar_amount) — Net change in unrealized depreciation for six months ended June 30, 2025

FAQ

Risk Factors

• Valuation of Investments [high — market]: The fund holds significant investments at fair value, including $70.38 billion in non-controlled/non-affiliated investments as of June 30, 2025. Changes in market conditions can lead to fluctuations in fair value, impacting net asset value and potentially causing realized or unrealized losses, as seen with the $113.7 million net realized loss in Q2 2025.
• Debt Levels and Interest Expense [high — financial]: The fund carries substantial debt, totaling $29.88 billion as of June 30, 2025. Interest expense for the quarter was $478.0 million, an increase from $446.2 million in Q2 2024, highlighting the impact of leverage on operating costs and profitability.
• Management and Incentive Fees [medium — operational]: Management fees increased to $138.8 million in Q2 2025 from $104.3 million in Q2 2024, and income-based incentive fees payable stood at $151.8 million as of June 30, 2025. These fees represent a significant operating expense that can impact net income.
• Compliance and Reporting [medium — regulatory]: As a publicly traded fund, Blackstone Private Credit Fund is subject to various regulatory requirements and reporting obligations. Non-compliance or changes in regulations could impact operations and financial performance.
• Capital Inflows and Share Repurchases [medium — financial]: The fund experienced strong capital inflows from share transactions, contributing $4.23 billion for Class I shares over six months. Simultaneously, share repurchases were $1.11 billion, indicating active capital management that could affect liquidity and NAV per share.

Industry Context

The private credit market continues to be a significant area for institutional investors seeking yield. Blackstone Private Credit Fund operates within a competitive landscape characterized by increasing demand for flexible financing solutions and a focus on direct lending. Regulatory scrutiny and evolving macroeconomic conditions, such as interest rate movements, are key factors influencing performance and strategy in this sector.

Regulatory Implications

As a registered investment company, the fund is subject to regulations governing asset management, disclosure, and investor protection. Changes in accounting standards or regulatory frameworks, particularly concerning valuation and leverage, could necessitate adjustments to reporting and operational practices.

What Investors Should Do

1. Monitor Net Asset Value (NAV) per Share Trend
2. Analyze Expense Structure
3. Evaluate Realized vs. Unrealized Performance
4. Assess Capital Allocation Strategy

Key Dates

• 2025-06-30: Quarterly Financial Reporting — Reported net increase in net assets of $997.7 million and total investment income of $1.84 billion for Q2 2025, providing current performance data.
• 2025-06-30: Balance Sheet Date — Total net assets reached $44.32 billion, with total assets at $76.71 billion and total liabilities at $32.39 billion.
• 2025-01-01: Start of Six-Month Period — Capital inflows from share transactions for Class I shares totaled $4.23 billion over the six months ending June 30, 2025.

Glossary

Non-controlled/non-affiliated investments

Investments in companies where Blackstone Private Credit Fund does not have significant influence or control, and is not affiliated. (This category represents the largest portion of the fund's investments ($70.38 billion) and is the primary source of its investment income.)

Net asset value per share

The market value of a fund's assets minus its liabilities, divided by the number of outstanding shares. (Indicates the per-share value of the fund's holdings. A slight decrease to $25.17 from $25.42 suggests a minor decline in the underlying asset values relative to liabilities or share count changes.)

Distributable earnings (loss)

The cumulative earnings of the fund that are available for distribution to shareholders. (A negative balance of ($538.2 million) as of June 30, 2025, indicates that the fund has distributed more than it has earned cumulatively, which could be due to realized capital gains or return of capital.)

Deferred financing costs

Costs incurred in connection with obtaining debt financing that are amortized over the life of the debt. (These costs reduce the carrying value of debt on the balance sheet and impact interest expense over time.)

Capital gains incentive fees payable

Fees owed to the investment manager based on realized capital gains. (The absence of a payable amount ($0) suggests no realized capital gains were recognized in the period that would trigger this fee.)

Year-Over-Year Comparison

Blackstone Private Credit Fund reported a 12.2% increase in total investment income to $1.84 billion for Q2 2025 compared to $1.64 billion in Q2 2024, driven by interest income. However, net realized losses widened significantly to $113.7 million from $14.1 million, impacting overall profitability despite a higher net increase in net assets from operations. Management fees also saw a notable increase from $104.3 million to $138.8 million, contributing to higher operating expenses.

Key Financial Figures

• $0.01 — beneficial interest ("Common Shares"), $0.01 par value per share, outstanding as of

Filing Documents

• bcred-20250630.htm (10-Q) — 28016KB
• bcred-06302025xexx101.htm (EX-10.1) — 48KB
• bcred-06302025xexx102.htm (EX-10.2) — 1629KB
• bcred-06302025xexx311.htm (EX-31.1) — 10KB
• bcred-06302025xexx312.htm (EX-31.2) — 10KB
• bcred-06302025xexx313.htm (EX-31.3) — 10KB
• bcred-06302025xexx321.htm (EX-32.1) — 5KB
• bcred-06302025xexx322.htm (EX-32.2) — 5KB
• bcred-06302025xexx323.htm (EX-32.3) — 5KB
• 0001803498-25-000062.txt ( ) — 111419KB
• bcred-20250630.xsd (EX-101.SCH) — 151KB
• bcred-20250630_cal.xml (EX-101.CAL) — 84KB
• bcred-20250630_def.xml (EX-101.DEF) — 1293KB
• bcred-20250630_lab.xml (EX-101.LAB) — 1111KB
• bcred-20250630_pre.xml (EX-101.PRE) — 1302KB
• bcred-20250630_htm.xml (XML) — 40386KB

Financial Statements

Financial Statements Condensed Consolidated Statements of Assets and Liabilities as of June 30, 2025 and December 31, 2024 (Unaudited) 3 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 (Unaudited) 5 Condensed Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2025 and 2024 (Unaudited) 7 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (Unaudited) 8 Condensed Consolidated Schedules of Investments as of June 30, 2025 and December 31, 2024 (Unaudited) 10 Notes to Condensed Consolidated Financial Statements (Unaudited) 141 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 289 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 305 Item 4.

Controls and Procedures

Controls and Procedures 306 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 307 Item 1A.

Risk Factors

Risk Factors 307 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 307 Item 3. Defaults Upon Senior Securities 307 Item 4. Mine Safety Disclosures 307 Item 5. Other Information 308 Item 6 . Exhibits 309

Signatures

Signatures i Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about Blackstone Private Credit Fund (together, with its consolidated subsidiaries, the "Company , " "we , " "us" or "our" ), our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation: our future operating results; our business prospects and the prospects of the companies in which we may invest; the impact of the investments that we expect to make; our ability to raise sufficient capital and repurchase shares to execute our investment strategy; general economic, logistical and political trends and other external factors, including inflation, trade policies and recent supply chain disruptions and their impacts on our portfolio companies and on the industries in which we invest; the ability of our portfolio companies to achieve their objectives; our current and expected financing arrangements and investments; changes in the gener

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Blackstone Private Credit Fund Condensed Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) (Unaudited) June 30, 2025 December 31, 2024 ASSETS Investments at fair value Non-controlled/non-affiliated investments (cost of $ 70,422,564 and $ 66,124,775 , respectively) $ 70,376,244 $ 65,689,987 Non-controlled/affiliated investments (cost of $ 12,242 and $ 558 , respectively) 12,750 1,394 Controlled/affiliated investments (cost of $ 2,972,570 and $ 2,860,338 , respectively) 2,786,658 2,728,396 Total investments at fair value (cost of $ 73,407,376 and $ 68,985,671 , respectively) 73,175,652 68,419,777 Cash and cash equivalents (restricted cash of $ 492,781 and $ 305,900 , respectively) 1,983,088 1,650,679 Interest receivable from non-controlled/non-affiliated investments 728,682 712,903 Interest receivable from non-controlled/affiliated investments 2 — Interest receivable from controlled/affiliated investments 106 96 Dividend receivable from controlled/affiliated investments 65,611 56,636 Receivable from broker 293,022 253,890 Deferred financing costs 127,898 132,751 Deferred offering costs 1,064 1,524 Receivable for investments 225,464 38,838 Derivative assets at fair value (Note 6) 111,639 16,476 Total assets $ 76,712,228 $ 71,283,570 LIABILITIES Debt (net of unamortized debt issuance costs of $ 169,894 and $ 136,810 , respectively) $ 29,881,151 $ 30,452,578 Payable for investments 190,766 250,150 Management fees payable (Note 3) 138,774 120,103 Income based incentive fees payable (Note 3) 151,790 144,724 Capital gains incentive fees payable (Note 3) — — Interest payable 402,314 398,004 Derivative liabilities at fair value (Note 6) 92,985 126,281 Due to affiliates 18,445 20,721 Distribution payable (Note 9) 386,707 331,762 Payable for share repurchases (Note 9) 1,095,993 531,058 Board of Trustee payable 232 224 Accrued expenses and other liabiliti

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