Blackstone’s BCRED Posts Strong Q3 Results
Earnings growth, low default rates, and strategic deal-making helped BCRED outperform public credit markets.
November 03, 2025
Blackstone Private Credit Fund Reports Resilient Q3 Amid Shifting Credit Markets
Blackstone Private Credit Fund (BCRED) delivered another solid quarter, driven by steady earnings growth, strong credit fundamentals, and a focused deployment strategy. As of September 30, 2025, the fund has generated a 10% net return since inception—outpacing leveraged loans, high yield bonds, and investment-grade fixed income.
The portfolio is built with risk in mind. 96% of investments are in senior secured debt, with an average loan-to-value ratio of 45%. That positioning helped keep the non-accrual rate low at 0.4%(measured at cost), which remains well below peer averages. Earnings growth across portfolio companies came in at 9% over the past year, outstripping market trends.
BCRED invested $6.8 billion this quarter, including $2.1 billion in new private debt deals. Most of these— 97% —were first lien loans, and they came with a 9.1% average yield and conservative capital structures. With Blackstone Credit & Insurance (BXCI) seeing a 20% year-over-year increase in its global deal pipeline, BCRED continued to stay selective and disciplined, even as deal activity picked up.
One standout deal this quarter: BXCI led a $1.75 billion financing package for Signant Health, leveraging long-standing sponsor relationships to source and structure the opportunity directly.
BCRED’s focus remains on private credit. These loans have priced at a premium to public leveraged loans, and that’s reflected in the portfolio mix— 92% of investments are private and predominantly floating rate. This structure has helped BCRED maintain stability even as rates shifted. After a series of Fed cuts, the fund adjusted its monthly distribution in October, resulting in a new annualized distribution rate of 9.6%.
BCRED’s average portfolio company has scale. With an average EBITDA of $256 million, these businesses tend to be better equipped to handle market cycles. Interest coverage ratios improved from 1.7x to 2.0x over the past year, reflecting stronger fundamentals and easing rate pressure. On the cost side, BCRED continues to run lean, with a 6.3% cost of debt and G&A expenses that sit well below peer benchmarks.
The fund’s performance is backed by the depth of Blackstone’s credit team—more than 120 professionals —and by the firm’s real-time market insight. That operational scale supports proactive risk management and allows BCRED to move with precision as the environment shifts.
Since the inception of Blackstone’s North America Direct Lending strategy, the team has invested more than $145 billion with an average loss rate of 0.08%. That track record continues to inform how BCRED manages risk and captures opportunity across cycles.
As markets evolve, BCRED is staying focused on delivering consistent income and stable performance—positioning itself as a long-term core allocation for investors looking to navigate private credit with confidence.
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