Private Credit Portfolio Analysis | Blackstone Secured Lending Fund Reports Q3 2024 Results

What's New: Blackstone Secured Lending Fund (BXSL) reported its Q3 2024 financial results, showcasing significant growth in its investment portfolio and assets. The fund's total assets increased to $12.37 billion as of September 30, 2024, up from $10.13 billion at the end of 2023. This growth was primarily driven by a substantial increase in investments owned at fair value, which rose to $11.98 billion from $9.87 billion over the same period.

Portfolio Dynamics:

• Total assets grew by 22.1% from $10.13 billion on December 31, 2023, to $12.37 billion on September 30, 2024.

• Investments owned at fair value increased by 21.4% from $9.87 billion to $11.98 billion over the nine-month period.

• Cash and cash equivalents rose by 25.4% from $154.86 million to $194.18 million during the same period.

Investment Activity :

• The fund made new investments totaling $2.57 billion in the first nine months of 2024.

• Proceeds from disposition of investments amounted to $574.17 million during the same period.

• Net investment activity resulted in a $1.99 billion increase in the investment portfolio.

Capital Structure:

• Long-term debt increased by 30.1% from $4.91 billion to $6.39 billion between December 31, 2023, and September 30, 2024.

• The fund raised $2.03 billion from issuance of debt in the first nine months of 2024.

• Stockholders' equity grew by 15.1% from $4.95 billion to $5.70 billion during the nine-month period.

Performance Profile:

• Net income for the third quarter of 2024 was $151.66 million, compared to $170.99 million in the same quarter of 2023.

• Net Asset Value (NAV) per share increased from $26.66 on December 31, 2023, to $27.27 on September 30, 2024.

• The fund paid $427.52 million in dividends during the first nine months of 2024.

Risk & Quality:

• Unrealized losses on investments were $16.87 million in Q3 2024, compared to unrealized gains of $20.87 million in Q3 2023.

• Realized losses on investments increased to $17.27 million in Q3 2024 from $9.00 million in Q3 2023.

• The fund reported $13.17 million in derivative assets as of September 30, 2024, up from zero at the end of 2023.

The Wrap: Blackstone Secured Lending Fund demonstrated strong growth in its investment portfolio and total assets in the first nine months of 2024. While the fund increased its long-term debt, it also strengthened its equity position. Despite a slight decrease in quarterly net income compared to the previous year, the fund maintained a positive trajectory in NAV per share and continued to pay substantial dividends. The shift from unrealized gains to losses and increased realized losses in Q3 2024 compared to Q3 2023 suggests potential challenges in the investment environment.

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