Blackstone Private Credit Fund Sees NAV Dip Amid Unrealized Losses

TL;DR

**Blackstone Private Credit Fund's NAV per share is down, signaling potential headwinds despite higher income, so proceed with caution.**

AI Summary

Blackstone Private Credit Fund reported a net increase in net assets from operations of $2.56 billion for the nine months ended September 30, 2025, a slight decrease from $2.64 billion in the same period of 2024. Total investment income rose to $5.62 billion for the nine months ended September 30, 2025, up from $4.91 billion in 2024, driven by increased interest income from non-controlled/non-affiliated investments, which reached $5.01 billion. However, net change in unrealized appreciation (depreciation) shifted significantly, from an appreciation of $45.13 million in 2024 to a depreciation of $318.62 million in 2025. Net realized loss also widened to $279.01 million in 2025 from $129.09 million in 2024, primarily due to derivative instruments. Total liabilities increased to $33.60 billion as of September 30, 2025, from $32.43 billion at December 31, 2024, with debt rising to $31.33 billion. Net asset value per share for Class I, S, and D shares decreased to $24.97 as of September 30, 2025, from $25.42 at December 31, 2024.

Why It Matters

This filing reveals a mixed picture for Blackstone Private Credit Fund, with rising investment income offset by significant unrealized depreciation and widening realized losses. For investors, the decline in Net Asset Value (NAV) per share from $25.42 to $24.97 signals potential erosion of capital, despite strong top-line income growth. The increase in debt to $31.33 billion also highlights increased leverage, which could amplify returns or losses. In a competitive private credit market, these performance metrics are crucial for attracting and retaining capital, especially as other funds vie for investor dollars. Employees and customers of portfolio companies may face increased scrutiny or pressure if the fund's investment performance continues to be impacted by unrealized losses.

Risk Assessment

Risk Level: medium — The risk level is medium due to a significant net change in unrealized depreciation of $318.62 million for the nine months ended September 30, 2025, a stark contrast to the $45.13 million appreciation in the prior year. Additionally, net realized losses widened to $279.01 million from $129.09 million, indicating a challenging environment for asset valuation and disposition, despite an increase in total investment income.

Analyst Insight

Investors should closely monitor Blackstone Private Credit Fund's future filings for trends in unrealized gains/losses and realized losses, as these are significantly impacting net assets. Consider the implications of the declining NAV per share and increased debt levels on overall portfolio risk and potential returns before making further investment decisions.

Financial Highlights

debt To Equity

0.67

revenue

$5.62B

operating Margin

N/A

total Assets

$80.34B

total Debt

$31.33B

net Income

$2.56B

eps

$N/A

gross Margin

N/A

cash Position

$2.16B

revenue Growth

+14.5%

Revenue Breakdown

Key Numbers

• $2.56B — Net increase in net assets from operations (Slight decrease from $2.64B in 2024 for the nine months ended September 30, 2025)
• $5.62B — Total investment income (Increased from $4.91B in 2024 for the nine months ended September 30, 2025)
• -$318.62M — Net change in unrealized appreciation (depreciation) (Shifted from $45.13M appreciation in 2024 to depreciation in 2025)
• -$279.01M — Net realized gain (loss) (Widened from -$129.09M in 2024 for the nine months ended September 30, 2025)
• $31.33B — Debt (Increased from $30.45B at December 31, 2024)
• $24.97 — Net asset value per share (Decreased from $25.42 at December 31, 2024)
• 1,872,144,651 — Common Shares issued and outstanding (As of September 30, 2025, an increase from 1,528,574,321 at December 31, 2024)
• $1.44B — Interest expense (Increased from $1.35B in 2024 for the nine months ended September 30, 2025)
• $464.17M — Income based incentive fees (Increased from $398.97M in 2024 for the nine months ended September 30, 2025)
• $793.65M — Payable for share repurchases (Increased from $531.06M at December 31, 2024)

Key Players & Entities

• Blackstone Private Credit Fund (company) — Registrant in the 10-Q filing
• Blackstone Private Credit Strategies LLC (company) — Adviser to the fund
• Blackstone Credit BDC Advisors LLC (company) — Sub-Adviser to the fund
• SEC (regulator) — Securities and Exchange Commission
• Atlas CC Acquisition Corp. (company) — Portfolio investment in First Lien Debt
• $2.56 billion (dollar_amount) — Net increase in net assets from operations for nine months ended September 30, 2025
• $5.62 billion (dollar_amount) — Total investment income for nine months ended September 30, 2025
• $318.62 million (dollar_amount) — Net change in unrealized depreciation for nine months ended September 30, 2025
• $279.01 million (dollar_amount) — Net realized loss for nine months ended September 30, 2025
• $24.97 (dollar_amount) — Net asset value per share as of September 30, 2025

FAQ

Risk Factors

• Market Volatility and Investment Value Fluctuations [high — market]: The fund experienced a significant shift from net unrealized appreciation of $45.13 million in 2024 to a depreciation of $318.62 million in 2025. This highlights the sensitivity of the fund's investment portfolio to market conditions and valuation changes.
• Increased Leverage and Debt Servicing [medium — financial]: Total debt increased to $31.33 billion as of September 30, 2025, from $30.45 billion at December 31, 2024. Concurrently, interest expense rose to $1.44 billion for the nine months ended September 30, 2025, from $1.35 billion in the prior year, indicating increased borrowing costs.
• Widening Net Realized Losses [medium — financial]: Net realized losses widened to $279.01 million in the nine months ended September 30, 2025, from $129.09 million in the same period of 2024. This increase was primarily attributed to derivative instruments, suggesting potential hedging or speculative activities with adverse outcomes.
• Increased Incentive Fees [low — operational]: Income-based incentive fees increased to $464.17 million for the nine months ended September 30, 2025, up from $398.97 million in 2024. While indicative of strong performance, this also represents a higher cost of operations.
• Share Repurchase Obligations [medium — financial]: Payable for share repurchases increased significantly to $793.65 million as of September 30, 2025, from $531.06 million at December 31, 2024. This could indicate a strategy to manage share count or meet redemption requests, impacting liquidity.

Industry Context

The private credit market continues to be a significant area for investment, characterized by a demand for flexible financing solutions. Funds like Blackstone Private Credit are navigating a landscape with rising interest rates and evolving market conditions, which can impact both income generation and investment valuations.

Regulatory Implications

As a publicly traded fund, Blackstone Private Credit Fund is subject to SEC regulations and reporting requirements. Changes in accounting standards or regulatory oversight concerning valuation, leverage, or disclosure could impact operations and financial reporting.

What Investors Should Do

1. Monitor unrealized depreciation and realized losses
2. Assess debt levels and interest rate sensitivity
3. Analyze the impact of share repurchases
4. Review investment income drivers

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period for key financial results, including investment income, net assets from operations, and changes in unrealized/realized gains/losses.
• 2024-09-30: Nine months ended September 30, 2024 — Comparative period for financial results, showing a decrease in net assets from operations and a shift in unrealized appreciation to depreciation.
• 2025-12-31: As of December 31, 2024 — Prior period balance sheet data used for comparison of assets, liabilities, and net assets.

Glossary

Non-controlled/non-affiliated investments

Investments where the fund does not have control or significant influence over the investee, and the investee is not related to the fund. (This category generated the highest interest income ($5.01 billion), driving the overall increase in investment income.)

Net change in unrealized appreciation (depreciation)

The change in the fair value of investments that have not been sold, reflecting market fluctuations and valuation adjustments. (A significant negative shift from appreciation to depreciation ($318.62 million depreciation in 2025 vs. $45.13 million appreciation in 2024) negatively impacted net assets.)

Net realized gain (loss)

The profit or loss realized from the sale of investments or the settlement of derivative instruments. (The widening net realized loss ($279.01 million in 2025) primarily due to derivatives, contributed to the decrease in net assets.)

Derivative assets/liabilities at fair value

Assets or liabilities arising from financial contracts whose value is derived from an underlying asset, index, or rate. (Changes in the fair value of derivatives contributed to both unrealized depreciation and realized losses.)

Payable for share repurchases

An amount owed by the fund for shares that have been repurchased but not yet settled. (This liability increased significantly, indicating potential cash outflows for share buybacks.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Blackstone Private Credit Fund reported a slight decrease in net assets from operations ($2.56B vs. $2.64B in 2024), despite a notable increase in total investment income ($5.62B vs. $4.91B). This divergence is primarily due to a significant swing from net unrealized appreciation to depreciation (-$318.62M vs. +$45.13M) and a widening net realized loss (-$279.01M vs. -$129.09M). Total debt has increased to $31.33B, and net asset value per share has declined to $24.97 from $25.42.

Key Financial Figures

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

Filing Documents

• bcred-20250930.htm (10-Q) — 28691KB
• bcred-09302025xexx311.htm (EX-31.1) — 10KB
• bcred-09302025xexx312.htm (EX-31.2) — 10KB
• bcred-09302025xexx313.htm (EX-31.3) — 10KB
• bcred-09302025xexx321.htm (EX-32.1) — 5KB
• bcred-09302025xexx322.htm (EX-32.2) — 5KB
• bcred-09302025xexx323.htm (EX-32.3) — 5KB
• 0001803498-25-000081.txt ( ) — 112588KB
• bcred-20250930.xsd (EX-101.SCH) — 155KB
• bcred-20250930_cal.xml (EX-101.CAL) — 84KB
• bcred-20250930_def.xml (EX-101.DEF) — 1299KB
• bcred-20250930_lab.xml (EX-101.LAB) — 1132KB
• bcred-20250930_pre.xml (EX-101.PRE) — 1311KB
• bcred-20250930_htm.xml (XML) — 41397KB

Financial Statements

Financial Statements Condensed Consolidated Statements of Assets and Liabilities as of September 30, 2025 and December 31, 2024 (Unaudited) 3 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 5 Condensed Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 7 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 8 Condensed Consolidated Schedules of Investments as of September 30, 2025 and December 31, 2024 (Unaudited) 10 Notes to Condensed Consolidated Financial Statements (Unaudited) 146 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 293 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 310 Item 4.

Controls and Procedures

Controls and Procedures 311 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 312 Item 1A.

Risk Factors

Risk Factors 312 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 312 Item 3. Defaults Upon Senior Securities 312 Item 4. Mine Safety Disclosures 312 Item 5. Other Information 312 Item 6 . Exhibits 313

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) September 30, 2025 December 31, 2024 ASSETS Investments at fair value Non-controlled/non-affiliated investments (cost of $ 73,270,661 and $ 66,124,775 , respectively) $ 72,926,002 $ 65,689,987 Non-controlled/affiliated investments (cost of $ 704,663 and $ 558 , respectively) 708,337 1,394 Controlled/affiliated investments (cost of $ 3,102,870 and $ 2,860,338 , respectively) 2,896,779 2,728,396 Total investments at fair value (cost of $ 77,078,194 and $ 68,985,671 , respectively) 76,531,118 68,419,777 Cash and cash equivalents (restricted cash of $ 721,131 and $ 305,900 , respectively) 2,162,003 1,650,679 Interest receivable from non-controlled/non-affiliated investments 696,283 712,903 Interest receivable from non-controlled/affiliated investments 10 — Interest receivable from controlled/affiliated investments 69 96 Dividend receivable from non-controlled/affiliated investments 1,096 — Dividend receivable from controlled/affiliated investments 65,714 56,636 Receivable from broker 307,148 253,890 Deferred financing costs 132,395 132,751 Deferred offering costs 987 1,524 Receivable for investments 306,969 38,838 Derivative assets at fair value (Note 6) 137,818 16,476 Total assets $ 80,341,610 $ 71,283,570 LIABILITIES Debt (net of unamortized debt issuance costs of $ 169,493 and $ 136,810 , respectively) $ 31,328,351 $ 30,452,578 Payable for investments 178,329 250,150 Management fees payable (Note 3) 145,621 120,103 Income based incentive fees payable (Note 3) 160,605 144,724 Capital gains based incentive fees payable (Note 3) — — Interest payable 499,731 398,004 Derivative liabilities at fair value (Note 6) 34,517 126,281 Due to affiliates 12,948 20,721 Distribution payable (Note 9) 408,239 331,762 Payable for share repurchases (Note 9) 793,648

View Full Filing

View this 10-Q filing on SEC EDGAR