Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Investor Presentation (December 2022)
26 slides from Blackstone Secured Lending Fund's investor presentation, December 2022
Slide 1: Blackstone Secured Lending Fund (BXSL)
Secured Lending Blackstone Secured Lending Fund (BXSL) DECEMBER 2022 Note: All data as of September 30, 2022, 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 materials are not intended as an offer to sell, o
Slide 2: BXSL is a premier BDC focused on originating senior secured loans to U.S. companies
BXSL IS A PREMIER BDC FOCUSED ON ORIGINATING SENIOR SECURED LOAN S TO U.S. COMPANIES 0.75% 9.3% 10.0% 98% 0% management regular annual total net return first lien assets on fee for initial 2 dividend yield(2) since inception(3) senior secured non-accrual years, then 1%(1) Shareholder alignment Premi
Slide 3: Competitive advantages
COMPETITIVE ADVANTAGES Differentiated BDC backed by the largest alternative asset manager globally(1) Blackstone Blackstone Credit Advantage deal flow, advisory network, operating partners, program makes Blackstone more than just a capital and trusted reputation provider, partnering with firms to im
Slide 4: 15+ year track record in U.S. Direct Lending
BLACKSTONE Blackstone has a long-standing track record investing in U.S. Direct Lending 15+ year track record in U.S. Direct Lending Preeminent Alt Defensive Expertise & Sector Blackstone Credit Manager Philosophy Focus Advantage $951B 0.10% 516 108+ AUM including $269B annualized loss credit profes
Slide 5: BXSL leads public BDC sector across many key metrics
POSITIONED AS A PREMIER BDC BXSL leads public BDC sector across many key metrics BXSL Rankings Among Large BDCs Well-Positioned for the on Key Metrics Current Environment Key Median of BXSL Interest rates represent a meaningful near-term Category Metrics BXSL Large BDCs Rank tailwind. 100% floating
Slide 6: Growing dividend well-covered by NII
DIVIDENDS Growing dividend well-covered by NII ▪ Raised the regular quarterly dividend to $0.60 per share in September from $0.53 per share Quarterly Dividend, NII Per Share and Leverage 9.3% $0.78 $0.80 regular dividend yield(1) $0.67 $0.67 $0.63 $0.61 $0.62 $0.20 $0.60 $0.30 $0.58 $0.55 $0.54 $0.5
Slide 7: BXSL well positioned to benefit from a rising rate environment
BENEFIT FROM RISING RATES We believe BXSL is well positioned to benefit from a rising rate environment ▪ 99.9% of debt investments are floating rate and 58% of liabilities are fixed (1) Estimated Quarterly NII Benefit(2) 0.95 6% $0.90 0.9 5% 0.85 $0.80 4.63%(3) 0.8 4% 0.75 +29% 3.75%(2) 3% 0.7 3.00%
Slide 8: High degree of shareholder alignment
SHAREHOLDER ALIGNMENT High degree of shareholder alignment ▪ 3-year lookback/total return hurdle on incentive fees on income 3-year lookback ▪ Management fee rate 0.75% for two years following public listing, then 2-year fee waiver steps up to 1%; 15% incentive fee rate steps up to 17.5% in two year
Slide 9: Manager fees significantly below peers
LOW FEES AND EXPENSES Manager fees significantly below peers Low Management Fees(1) Low G&A Expenses as % of NAV(1)(2) 0.8% 1.50% 0.75%-1.0% 0.3% BXSL Peer Avg. BXSL Peer Avg. Low Incentive Fees(1) Low Cost of Leverage(1)(2)(3) 18.8% 4.6% 15.0%-17.5% 3.7% BXSL Peer Avg. BXSL Peer Avg. Note: Further
Slide 10: Portfolio focused on good neighborhoods
HIGH-QUALITY PORTFOLIO Portfolio focused on “good neighborhoods” Sector Exposure(1) (% of total portfolio) 47% Software, 15% loan-to-value(2) Remainder of Portfolio, 28% (23 Industries)(3) 1% weighted average Health Care Providers & Services, 12% issuer concentration 1% Transportation of portfolio m
Slide 11: Blackstone Credit driving the trend of $1B+ private transactions
BLACKSTONE CREDIT DRIVING THE TREND OF $1B+ PRIVATE TRANSACTIONS $1B+ private deals led by Blackstone Credit 30 ~$2B ~$5B ~45% deals led(1) weighted average weighted average weighted average tranche size(2) enterprise value (2) loan-to-value(2) More $1B+ Deals Done in Private Markets 56 deals totali
Slide 12: Reinventing the lender value proposition: Blackstone Network
REINVENTING THE LENDER VALUE PROPOSITION Benefits of being part of the largest alternatives platform Blackstone Network Leverage Expert Enhance Revenue Optimize Costs Knowledge $300M+ $205M 108 revenue generated through the total annual savings(1) across internal Blackstone resources(3) Blackstone A
Slide 13: Flexible and efficient liability management
HISTORICALLY STABLE LOW-COST FINANCING SOURCES Flexible and efficient liability management Diversified Financing Sources with Significant Liquidity ($ in millions) $131 Available Cash 74% of assets supported by $999 Excess Borrowing Capacity unsecured debt and equity $3,200 Unsecured Notes 3.7% weig
Slide 14: Financial overview
FINANCIAL OVERVIEW Strong financial profile with dividends covered by NII and industry-low expense ratios ▪ Net investment income has exceeded BXSL’s History of Strong regular dividend for the last thirteen 2.5% Dividend Coverage quarters additional dividend yield based on special dividends(2) ▪ Low
Slide 15: Historical NAV trend
HISTORICAL NAV TREND Growth in NAV per share since inception and strong quarterly dividend payout ▪ $9.40 of value created for investors since inception, representing a 44% total return (1) Net Asset Value and Cumulative Dividends Since Inception(2) $34.40 $32.60 $29.50 $28.02 $8.64 $6.33 $24.57 $2.
Slide 16: Footnotes
Footnotes Blackstone | 16
Slide 17: Notes
NOTES Notes to Page 2 1) Post IPO, manager fee step ups waived for two years. 0.75% management fee will increase to 1.0% and 15% incentive fee will increase to 17.5% two years following BXSL’s initial public offering, which occurred on October 28, 2021. The foregoing terms are not intended to be com
Slide 18: Notes (cont'd)
NOTES (CONT’D) Notes to Page 4 As of September 30, 2022 unless otherwise noted. Assets under management (“AUM”) are estimated and unaudited. 1) Blackstone Credit & Insurance AUM is a combined figure inclusive of Blackstone Credit (“BXC”), Harvest Fund Advisors LLC, Asset Based Finance, and Blackston
Slide 19: Notes (cont'd)
NOTES (CONT’D) Notes to Page 9 1) Peer fees do not include waivers, lookbacks, step ups or hurdle rates. BXSL fee step ups waived for two years. 0.75% management fee will increase to 1.0% and 15% incentive fee will increase to 17.5% two years following BXSL’s initial public offering, which occurred
Slide 20: Important Disclosure Information
Important Disclosure Information Blackstone | 20
Slide 21: Important Disclosure Information
IMPORTANT DISCLOSURE INFORMATION This document (together with any attachments, appendices, and related materials, the “Materials”) may not be relied on in any manner as legal, tax, investment, accounting or other advice or as an offer to sell, or a solicitation of an offer to buy, any security or in
Slide 22: Important Disclosure Information (cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) Aggregated Returns. The calculation of combined or composite net IRR/net returns takes the aggregate limited partner cash flows by actual date from inception of the strategy through the current quarter end and uses the terminal value (including unrealized in
Slide 23: Important Disclosure Information (cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) Estimates /Targets. Any estimates, targets, forecasts, or similar predictions or returns set forth herein are based on assumptions and assessments made by Blackstone that it considers reasonable under the circumstances as of the date hereof. They are necessa
Slide 24: Important Disclosure Information (cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) Leverage; Borrowings Under a Subscription Facility. A Fund may use leverage, and a Fund may utilize borrowings from Blackstone Inc. or under its subscription-based credit facility in advance of or in lieu of receiving investors’ capital contributions. The us
Slide 25: Important Disclosure Information (cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) The Gross IRR calculation at the Fund level is computed on a levered basis, considering fund-level borrowings (made in lieu of or in advance of calling capital contributions). Net MOIC is determined by dividing (a) the sum of the amount distributed with resp
Slide 26: Important Disclosure Information (cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) 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 be reliable for purposes us
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