Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Raymond James Institutional Investor Conference 2025
39 slides from Blackstone Secured Lending Fund's conference presentation, Mar 3, 2025
Slide 1: Blackstone Credit & Insurance
Blackstone Credit & Insurance MARCH 2025 Kate Rubenstein, Managing Director, COO of BXSL Justin Farshidi, Principal Note: All data as of December 31, 2024, unless otherwise noted. The sole purpose of this material is to inform, and it in no way is intended to attract any funds or deposits. These mat
Slide 2: Market Overview
Market Overview
Slide 3: Thematic trends in the private credit space
PRIVATE CREDIT THEMES Thematic trends in the private credit space Attractive All-in Yields Secular Shift with Long Runway Equity-like returns for credit risk Investors under allocated and supply demand imbalance exists Expanding Investable Universe Corporates and Consumers Healthy Multiple ways to c
Slide 4: Private credit delivers attractive income through cycles
PRIVATE CREDIT’S CONSISTENT INCOME Private credit delivers attractive income through cycles Key Takeaways ▪ Over the last two decades, private credit has delivered an attractive average income of ~11% (1) across different interest rate environments, a significant premium above average cash funds yie
Slide 5: Rates may continue to decline
EXPECTATION FOR RATE CUTS Rates may continue to decline, while remaining well above the 15-year average of ~1.4% Historical Base Rates (1,2) 6.0% 5.0% 4.0% 4.3% as of 2/19/25(3) 3.0% 2.0% 1.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: Represents Blackstone
Slide 6: Private credit generates resilient returns across market backdrops
PRIVATE CREDIT IN A LOWER RATE ENVIRONMENT Private credit generates resilient returns across market backdrops, including in a declining base rate environment Impact of Declining Base Rates: 1 2 3 Asset level yields Deployment Credit fundamentals fall and so does cost of increases with may improve as
Slide 7: Strong rebound off a 30-year low in M&A activity
LARGE POTENTIAL PICKUP IN M&A Strong rebound off a 30-year low in M&A activity will drive an increase in new supply that will benefit all credit strategies Announced M&A Deal Value ($B) (as a % of Nominal US GDP) (1) +25% 2000 2002 2008 2020 2014 2016 2010 2012 2018 2022 1996 2004 2006 2024 1998 202
Slide 8: Private credit markets are growing as a core financing solution
EARLY INNINGS OF PRIVATE CREDIT Private credit markets are growing as a core financing solution for the global economy Total Addressable Market (1) (in trillion) $30T+ Infrastructure & Commercial Physical Assets Finance Direct Lending Real Estate Lending Consumer $2T Fund Finance Finance Private Cre
Slide 9: Private credit need fueled by supply-demand imbalance
IMBALANCE OF SUPPLY AND DEMAND Private credit need fueled by supply-demand imbalance Energy Digital Power Corporate Transition Infrastructure and Utilities Credit $100T 17x 16x 5x capital need increase in demand for increase in 2030 more dry powder in private through 2050 (1) data centers since 2019
Slide 10: Private credit has demonstrated increased premiums at lower loan-to-values
DIRECT ORIGINATION PREMIUM Private credit has demonstrated increased premiums at lower loan-to-values Average Loan-to-Value (LTV) (1,2) Spread Premium (3) Historical high-yield and bank loan data for U.S. LBOs Direct loans to larger borrowers vs. public loans and BXSL (bps) Direct Loans to $100M+ EB
Slide 11: Dry powder has driven increased opportunities for private credit
DEMAND FOR PRIVATE SOLUTIONS Dry powder has driven increased opportunities for private credit Private Equity Dry Powder(1) Buyers are Increasingly Choosing Private North America only ($ in billions) Lenders(2) % of LBOs based on count (LTM Q4’24) ~$1,500 84% 5x+ 70% as more demand higher than supply
Slide 12: Blackstone's Position
Blackstone’s Position
Slide 13: Private credit's farm-to-table value allows individuals to capture excess return potential
DIRECT ORIGINATION ADVANTAGE Private credit’s “farm-to-table” value allows individuals to capture excess return potential Food Supply Chain Public Markets Private Credit Structural Benefits Farm Borrower Borrower Premium return Downside protection Wholesale Distributor Originator/Structuring / Direc
Slide 14: Blackstone focuses on high-quality assets in resilient sectors
WHERE YOU INVEST MATTERS Blackstone focuses on high-quality assets in resilient sectors BXCI Scale BXCI Sector Selection BXCI Seniority LTM EBITDA Growth(1) Private Credit Default Rates 1st Lien Debt Exposure(3) (YoY) (2024 Forecast by Sector(2)) 95% BXCI Focus Sector? 83% 9% 7% Consumer 5.5% × Food
Slide 15: Portfolio Characteristics
PORTFOLIO CHARACTERISTICS 98.0% 98.8% $13.1B of investments are first lien, of investments are floating rate debt(1) investments at fair value senior secured debt(1) 46.0% 276 0.3% average loan-to-value portfolio companies non-accrual debt investments(4) (LTV)(2)(3) Portfolio Predominantly Portfolio
Slide 16: Private credit market trends by size
PRIVATE CREDIT MARKET TRENDS BY SIZE ▪ BXSL invests in larger companies because we believe they provide the opportunity for better risk-adjusted returns ▪ Private credit market data from Lincoln International shows larger borrowers experienced greater growth over the last year and fewer defaults his
Slide 17: Portfolio Company Fundamentals
PORTFOLIO COMPANY FUNDAMENTALS ▪ BXSL portfolio companies have higher growth than the broader market over the past year while also being more profitable than the average private credit borrower 3x+ More Profitable 25%+ More Profitable LTM EBITDA Growth LTM EBITDA Margin (Year-over-Year %) (%) 28% 10
Slide 18: BXSL's defensive positioning continues to deliver strong credit performance
BXSL’S STRONG CREDIT PERFORMANCE BXSL’s defensive positioning continues to deliver strong credit performance Strong Ability to Service Debt vs. Private Low Non-Accruals vs. Peers Credit Market Non-Accruals as a % of Cost % of Portfolio with Interest Coverage Ratio >1.0x (Excl ARR) 91% 2.6% 85% 0.3%
Slide 19: Funding Profile
FUNDING PROFILE Constructed liabilities leading to competitive cost of debt ▪ Well-structured, diversified, efficient capital structure with significant available liquidity ▪ BXSL was upgraded to Baa2/stable from Moody’s in September 2024 and maintains investment grade corporate credit ratings of BB
Slide 20: Historic Investment Activity
HISTORIC INVESTMENT ACTIVITY ▪ Net funded investment activity of $1.2 billion in the quarter: – New investment commitments of $1.2 billion at par and investment fundings of nearly $1.4 billion – Proceeds from sales and repayments of $213 million Originations and Fundings Investment Activity Summary
Slide 21: BXCI Value Creation
BXCI VALUE CREATION Portfolio companies have full access to Blackstone’s Value Creation Program 90%+ $5B $263M of BXCI portfolio companies total illustrative revenue generated(2)(4) by BXCI introduced actively participate in value created across BXCI portfolio companies the program(1) portfolio comp
Slide 22: BXSL is positioned as a premier BDC
WE BELIEVE BXSL IS POSITIONED AS A PREMIER BDC BXSL has led peer BDCs across many key metrics BXSL Rankings Among Traded BDC Peers(8) on Key Metrics Quarterly figures as of December 31, 2024 Category Key Metrics BXSL 3Q Traded BDC Peer Rank Interest Income (excl. PIK, dividend, fee and other Earning
Slide 23: Endnotes
Endnotes
Slide 24: Endnotes
ENDNOTES Expectation for Rate Cuts 1. LIBOR data is per Bloomberg. Time period of January 2, 2008 to January 3, 2019 is represented by 3-month daily USD LIBOR rates. 2. SOFR data is per Bloomberg. Time period of January 3, 2019 to February 19, 2025 is represented by 3-month daily SOFR rates. SOFR, w
Slide 25: Endnotes (Cont'd)
ENDNOTES (CONT’D) BXCI Value Creation 1. This number represents the amount of introductions across Blackstone Credit & Insurance portfolio companies and is not limited to introductions made to BXSL portfolio companies, which may have a lower participation rate or be significantly lower. “Active Part
Slide 26: Key Risk Factors
KEY RISK FACTORS HIGHLY CONFIDENTIAL & TRADE SECRET A detailed summary of the risks to which a Fund is subject is available in such Fund’s Offering Documents. Capitalized terms used herein but not otherwise defined have the meanings set forth in the "Important Disclosure Information" section or in t
Slide 27: Risk Factors and Important Disclosure Information
Risk Factors and Important Disclosure Information
Slide 28: BXSL Risk and Reward Disclosure
BLACKSTONE SECURED LENDING FUND (“BXSL” OR THE “FUND”) - RISK AND REWARD DISCLOSURE Set out below is a summary of the rewards and associated risks of an investment in the Fund. This summary does not purport to be a comprehensive statement of all such rewards and risks and investors should refer to t
Slide 29: Important Disclosure Information
IMPORTANT DISCLOSURE INFORMATION HIGHLY CONFIDENTIAL & TRADE SECRET This document (together with any attachments, appendices, and related materials, the “Materials”) is provided on a confidential basis for informational due diligence purposes only and is not, and may not be relied on in any manner a
Slide 30: Important Disclosure Information
IMPORTANT DISCLOSURE INFORMATION HIGHLY CONFIDENTIAL & TRADE SECRET Blackstone Proprietary Data. Certain information and data provided herein is based on Blackstone proprietary knowledge and data. Portfolio companies may provide proprietary market data to Blackstone, including about local market sup
Slide 31: Important Disclosure Information
IMPORTANT DISCLOSURE INFORMATION HIGHLY CONFIDENTIAL & TRADE SECRET ERISA Fiduciary Disclosure. The foregoing information has not been provided in a fiduciary capacity under ERISA, and it is not intended to be, and should not be considered as, impartial investment advice. Estimates / Targets. Any es
Slide 32: Important Disclosure Information
IMPORTANT DISCLOSURE INFORMATION HIGHLY CONFIDENTIAL & TRADE SECRET Images. The Materials contain select images of certain investments that are provided for illustrative purposes only and may not be representative of an entire asset or portfolio or of a Fund's entire portfolio. Such images may be di
Slide 33: Important Disclosure Information
IMPORTANT DISCLOSURE INFORMATION HIGHLY CONFIDENTIAL & TRADE SECRET Third-Party Information. Certain information contained in the Materials has been obtained from sources outside Blackstone, which in certain cases have not been updated through the date hereof. While such information is believed to b
Slide 34: Important Disclosure Information (Cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) HIGHLY CONFIDENTIAL & TRADE SECRET Australia The provision of this document to any person does not constitute an offer of securities or financial products of any kind to that person or an invitation to that person to apply for securities or financial product
Slide 35: Important Disclosure Information (Cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) HIGHLY CONFIDENTIAL & TRADE SECRET China This document and the related documents do not and are not intended to constitute a sale, an offer to sell or a solicitation of an offer to buy, directly or indirectly, any securities in the People’s Republic of China
Slide 36: Important Disclosure Information (Cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) HIGHLY CONFIDENTIAL & TRADE SECRET New Zealand Notice to residents of New Zealand: This document and the information contained in or accompanying this document are not, and are under no circumstances to be construed as, an offer of financial products for iss
Slide 37: Important Disclosure Information (Cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) HIGHLY CONFIDENTIAL & TRADE SECRET Singapore Blackstone Singapore Pte. Ltd. ("Blackstone Singapore") is a capital markets services license holder for fund management and dealing in securities and is an exempt financial adviser (in relation to the marketing o
Slide 38: Important Disclosure Information (Cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) HIGHLY CONFIDENTIAL & TRADE SECRET Taiwan The interests may be made available outside Taiwan to Taiwan resident investors for purchase outside Taiwan by such investors but are not permitted to be marketed, offered, distributed, transferred or sold in Taiwan.
Slide 39: Important Disclosure Information (Cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) NOTICE TO INVESTORS IN THE UK AND THE EEA Blackstone Europe LLP ("BELL") of 40 Berkeley Square, London, W1J 5AL (registration number OC352581) is authorized and regulated by the Financial Conduct Authority (the “FCA”) (firm reference number 520839) in the Un
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