Assets and Management - As of December 31, 2024, Blackstone had total assets under management (AUM) of over $1.1 trillion, with Blackstone Credit & Insurance managing $376 billion[35]. - The company is invested in over 4,800 corporate issuers globally, with over 400 sponsor and advisor relationships, enhancing its access to diverse investment opportunities[46]. - The company had unfunded delayed draw term loans and revolvers totaling $1.7 billion as of December 31, 2024[94]. - The company's asset coverage was reported at 185.7% as of December 31, 2024[96]. - Total assets increased to $13,472,224 thousand as of December 31, 2024, up from $10,134,618 thousand in 2023, representing a growth of approximately 33.1%[711]. Investment Strategy and Performance - Blackstone Credit & Insurance aims to provide attractive yields by predominantly investing in floating rate assets, which are expected to perform well in changing interest rate environments[39]. - The company targets investments primarily in secured debt, with at least 80% of total assets invested in secured debt investments[57]. - The investment strategy includes a rigorous due diligence process focused on downside protection and capital preservation[71]. - The company expects to realize returns through refinancings, sales of portfolio companies, and potential initial public offerings[64]. - The company reported a total investment amount of $399,087 thousand with a fair value of $391,477 thousand, representing a 6.43% return on net assets[732]. Financial Performance - Net investment income after tax expense for 2024 was $707,595 thousand, up from $653,905 thousand in 2023, reflecting an increase of approximately 8.2%[714]. - Total investment income for 2024 was $1,326,901 thousand, compared to $1,143,517 thousand in 2023, reflecting an increase of about 16.0%[714]. - The net increase in net assets resulting from operations was $694,097, compared to $611,951 in 2023, reflecting a growth of 13.5%[720]. - The distribution payable for 2024 was $170,751, up from $143,052 in 2023, reflecting an increase of 19.4%[722]. Debt and Financing - The company intends to continue using leverage for its investment activities, permitted up to a debt-to-equity ratio of 2:1 under the 1940 Act[27]. - The company may enter into total return swap agreements to add leverage to its portfolio[138]. - The company has created leverage by securitizing its assets, including in CLOs, and may pursue additional debt securitizations[139]. - The company is required to maintain a bond for protection against larceny and embezzlement[143]. - The total amount of debt reported across various entities is approximately $969,872,000, with a significant portion attributed to World Insurance Associates, LLC[747]. Risk Management - The company actively monitors portfolio performance with a focus on anticipating negative credit events[81]. - The company is subject to financial market risks, including valuation risk and interest rate risk[683]. - The company must diversify its holdings so that at least 50% of total assets are represented by cash and cash items, U.S. government securities, and other RICs[154]. - The company has a significant focus on healthcare providers and services, indicating a strategic emphasis on this sector[741]. Incentive Fees and Distributions - The income-based incentive fee is set at 17.5% with a hurdle rate of 1.5% per quarter (6.0% annualized)[105]. - The company intends to distribute substantially all of its available earnings annually, with distributions paid on a quarterly basis[124]. - The company must distribute an amount equal to at least 98% of its ordinary income and 98.2% of its capital gains to avoid a 4% excise tax[156]. Investment Team and Expertise - Blackstone Credit & Insurance's investment team consists of 376 professionals, including a 96-person Chief Investment Officer team focused on various investment functions[36]. - The investment team consists of 103 dedicated professionals as of December 31, 2024, enhancing the company's sourcing and origination capabilities[67]. - Blackstone Credit & Insurance's Senior Managing Directors have an average of 24 years of industry experience, contributing to its expertise in the credit-focused investment platform[37]. Portfolio Composition - The total fair value of investments reported is $1,245,934,000, with a net asset percentage of 19.54%[741]. - The fund's diversified portfolio includes investments across various sectors, including Commercial Services & Supplies and Chemicals, enhancing its risk management strategy[728]. - The company has a significant investment in Cambium Learning Group, Inc. amounting to $286,185 thousand, with a fair value of $284,735 thousand, yielding a 4.71% return[732]. Competition and Market Position - The company faces significant competition from larger BDCs and investment funds, which may have lower costs of capital and greater resources[126]. - The company believes the market for lending to U.S. private companies is underserved, with over $1.4 trillion of "dry powder" available from private equity funds as of December 31, 2024[41].
Blackstone Secured Lending Fund(BXSL) - 2024 Q4 - Annual Report