Blackstone nets $814m with private credit BDC public offering

The Blackstone Private Credit Fund, Blackstone’s non-listed business development company, broke escrow with roughly $814 million in net proceeds for its continuous public offering on January 7. Officials at the $135 billion credit unit said that including leverage the fund now has approximately $1.8 billion of investable capital. The Blackstone Private Credit Fund (BCRED) is part of Blackstone Credit’s $21 billion direct lending platform, which offers privately originated, senior secured, floating rate loans to U.S. and European middle market companies. The aim with BCRED is to offer individual investors access to private credit through the publicly offered fund structure that is sold through Blackstone’s Private Wealth Solutions business. “Just as we reimagined the non-traded REIT with BREIT, we are hoping to do the same with private credit and BDCs,” said Joan Solotar, Blackstone’s global head of private wealth solutions. “The positive initial response to BCRED illustrates the need for income solutions in today’s low rate environment and the compelling opportunity BCRED can provide.” Global Head of Blackstone Credit Dwight Scott added that the direct lending business has been focused on developing long-term partnerships with companies to support their success. “With BCRED, we’re excited to give individual investors the same access to our experienced team, scale and deep resources that we provide our institutional clients,” Scott said. Overall, Blackstone has $584 billion in global alternative assets. BCRED specifically aims to deliver monthly income by investing in a range of private credit investments ranging from first lien senior secured and unitranche loans to second lien and mezzanine debt. “With BCRED, we’re focused on investing in established, historically stable enterprises with positive cash flows and staying senior in the capital structure,” added Brad Marshall, co-head of performing credit and CEO of BCRED. “Our scale and resources differentiate us in the market, help us identify investment opportunities and help support the long-term success of the companies we invest in.”

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