Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Investor Day (December 2023)
83 slides from Blackstone Secured Lending Fund's investor day presentation, Dec 7, 2023
Slide 1: 2023 Blackstone Secured Lending (BXSL) Investor Day
2023 Blackstone Secured Lending (BXSL) Investor Day DECEMBER 7, 2023
Slide 2: Introduction of BXSL and the "Distinctly" Blackstone Approach to Private Credit
Introduction of BXSL and the “Distinctly” Blackstone Approach to Private Credit Jonathan Bock, Co-CEO of BXSL This is not an offer or sale of any security or investment product Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will achieve its o
Slide 3: Disclaimer
DISCLAIMER This presentation is prepared for Blackstone Secured Lending (“BXSL” or the “Fund”) for the benefit of its prospective and cu rrent holders of equity securities. The sole purpose of this material is to inform, and it in no way is intended to attract any funds or deposits. These material s
Slide 4: Disclaimer
DISCLAIMER Certain information contained in this communication constitutes “forward -looking statements” within the meaning of the federal s ecurities laws and the Private Securities Litigation Reform Act of 1995. These forward -looking statements can be identified by the use of forward looking term
Slide 5: Disclaimer
DISCLAIMER 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 used herein, no representatio ns are made as to the accura
Slide 6: Agenda
AGENDA Time Topic Presenters 8:00am–8:25am Breakfast and Registration 8:25am–8:35am Introduction of BXSL and the “Distinctly” Blackstone Approach to Private Credit Jonathan Bock Brad Marshall Roger Hoit (Moelis) Brad Colman 8:35am–9:25am Origination Central: The “Proprietary” Art of the Deal Funnel
Slide 7: Frequently Used Words at Typical Investor Day
FREQUENTLY USED WORDS AT TYPICAL INVESTOR DAY Common phrases investors hear at BDC investor days track recordmarket leading broad exposure proprietary leverage platform capital appreciation protections scale deep knowledge consistent returns sponsor relationships high conviction highly selective str
Slide 8: Takeaways for the day – we believe…
KEY TAKEAWAYS Takeaways for the day – we believe… ▪ Higher for longer interest rates It’s a “golden moment” ▪ Double-digit yields on senior debt1 1 ▪ BXSL Q3’23 LTM return 14.5%2 for private credit ▪ BXSL Q3’23 annualized dividend yield 11.6%3 Private Credit is not a bubble and ▪ Retrenchment of tra
Slide 9: Base rates and spreads have widened, which has increased BXSL's asset-level yields
PRIVATE CREDIT IN THE SPOTLIGHT Base rates and spreads have widened, which has increased BXSL’s asset-level yields 1 BXSL Asset-Level Yields Have Increased 12.2% “We believe that it is a golden moment for credit. +460bps Today you can get equity- like returns, even though 7.0% you are senior in the
Slide 10: BXSL has generated double-digit returns in fixed income
BXSL’S PERFORMANCE BXSL has generated double-digit returns in fixed income Performance Inception-to-Date Returns1,2 As of September 30, 2023 November 20, 2018 to September 30, 2023 14.5% 10.9% 1-yr total return (NAV + total dividends) 2 9.3% 11.6% Q3’23 annualized dividend yield 3 4.7% 14.4% 3.7% Q3
Slide 11: BXSL leads across many key metrics
KEY BXSL HIGHLIGHTS BXSL leads across many key metrics Earnings Momentum Capital Protection LTM Return1,2 Dividend Yield2,3 % First Lien Senior Non-accruals Secured2,3 (at cost)2,4 14.5% 11.6% 98.4% <0.1% vs. 10.9% BDC peers vs. 10.1% BDC peers vs. 65.6% BDC peers vs. 2.4% BDC peers Well Positioned
Slide 12: U.S. private credit has been a growing market
SIGNIFICANT WHITE SPACE U.S. private credit has been a growing market ≈$4 Trillion Total Addressable Market $1.6T Companies with >$1B debt $ 2.9T potential opportunity set $1.3T Companies with <$1B debt $1.0T $9.8B BXSL U.S. Private U.S. Leveraged Total Assets Credit Market1 Finance Market2 Note: As
Slide 13: We believe this "higher for longer" rate environment can create meaningful dispersion amongst managers
RISING DISPERSION We believe this “higher for longer” rate environment can create meaningful dispersion amongst managers Higher Interest Rates Not Just for Longer, but Maybe Forever Moody’s Warns of ‘Serious Challenge’ to $1.4 Trillion Private Credit Market Historical 3-Month SOFR1 5.4% “Private cre
Slide 14: Larger companies have performed better over the past year with fewer defaults historically
RISING DISPERSION - SMALLER AND LARGER COMPANIES Larger companies have performed better over the past year with fewer defaults historically Larger Companies Grew 7x+ the Rate of …And Larger Companies Have Historically Smaller Companies Last Year… Defaulted Less Often Growth in LTM EBITDA (Year-over-
Slide 15: Not all private credit is created equal: sector selection matters
RISING DISPERSION – SECTOR SELECTION Not all private credit is created equal: sector selection matters YoY LTM Operating Default Rate Profit Growth Less Cyclical Sectors 3% +5% More Cyclical Sectors 8% +2% ~90% of BXSL’s portfolio is in historically lower-default rate sectors1 Please refer to “Endno
Slide 16: BXSL's positioning has continued to deliver robust credit performance
RISING DISPERSION – BXSL’S CREDIT PERFORMANCE VS. MARKET BXSL’s positioning has continued to deliver robust credit performance Low Non-Accruals vs. Peers Strong Ability to Service Debt vs. Non-accruals as a % of Cost Private Credit Market % of Portfolio with LTM Interest Coverage Ratio >1.0x 2.4% 97
Slide 17: We believe Blackstone Credit offers capabilities that help set BXSL apart
BXC SCALE AND DEPTH DIFFERENTIATES OUR PLATFORM We believe Blackstone Credit offers capabilities that help set BXSL apart What Credit Investors Seek What BXC Has $93B invested in North America Direct Lending1 over 17- Established Manager year track record1 with 0.1% annualized loss rate2 3,150+ issu
Slide 18: We have the wind at our backs
WE HAVE THE WIND AT OUR BACKS BXSL has generated one of the highest annualized base dividend yields while maintaining the highest true concentrated first lien portfolio Q3’23 Annualized Regular Dividend Yield 1 13% 11.6% BDC Dividend #11 Yield BXSL BDC BDC BDC #5 #9 11% BDC #4 #1 Higher Yield BDC #2
Slide 19: Lower fees and expenses have contributed to total returns compared to peer averages
TOTAL FEES AND EXPENSES Lower fees and expenses have contributed to total returns compared to peer averages Non-interest Fees and Expenses Total Return % of NAV December 31, 2018 to September 30, 2023 6.9% 32% less 11.5% expensive compared to 24% higher peers than peers 9.3% 4.7% 1 2 1,3 3 BDC Peers
Slide 20: BXSL has led peer BDCs across many key metrics
BXSL IS WELL POSITIONED AS A PREMIER BDC BXSL has led peer BDCs across many key metrics BXSL Rankings Among Peer BDCs on Key Metrics As of September 30, 2023 Category Key Metrics BXSL Peer Rank Earnings Interest Income (excl. PIK, dividend, fee and Quality other income) as % Total Income1 96.0% High
Slide 21: Origination Central: The "Proprietary" Art of the Deal Funnel
Origination Central: The “Proprietary” Art of the Deal Funnel Brad Marshall, Global Head of Private Credit, Chairman & Co-CEO of BXSL Roger Hoit, Chairman of Private Equity Solutions, Moelis & Company Brad Colman, Head of Healthcare Investing, BXC Viral Patel, Head of Technology Investing, BXC Krist
Slide 22: Private credit: small niche to primary capital solution
EVOLUTION OF PRIVATE CREDIT Private credit: small niche to primary capital solution U.S. Private Credit Market Size1 AUM $1.0T Rapid Expansion 65+ ▪ Large cap $1B+ private Steady Growth ▪ Asset-based unitranches2 ▪ First lien Financing ▪ Unitranche ▪ ARR loans ▪ Second lien Limited Asset Class ▪ Hol
Slide 23: Brand, scale and expertise define Blackstone Credit
OUR ORIGINATION EDGE Brand, scale and expertise define Blackstone Credit Innovation $297B ▪ Creative capital solutions across the capital structure BXC AUM1 ▪ Value-add provider beyond capital Scale & Incumbency 3,150+ ▪ One of the world’s largest alternative credit managers5 credits covered2 ▪ Leve
Slide 24: Innovation: Expansive Coverage, Thematic Origination, Value Add, Complete Capital Solutions
INNOVATION Expansive Thematic Value Add Complete Capital Coverage Origination Program Solutions ▪ Global coverage ▪ Data driven ▪ 90%+ adoption2 ▪ Create deal flow ▪ Advisor focus ▪ Market ▪ $3.5B+ illustrative ▪ Liquid / private ▪ Cross-firm sourcing1 opportunities enterprise value ▪ Senior / junio
Slide 25: We use our incumbency to lead proprietary transactions
INCUMBENCY We use our incumbency to lead proprietary transactions 3,150+ 200+ $12B+ corporate issuers sponsors / advisors originated deal flow covered by BXC1 covered by BXC since 20212 Blackstone Credit was sole provider of $800M to aerospace company Business Overview Incumbency Other BXSL Deals JS
Slide 26: We use our expertise and portfolio depth to add value to portfolio companies
EXPERTISE We use our expertise and portfolio depth to add value to portfolio companies 100+ 50+ 28 BX senior advisors1 BX data scientists BX MDs / PhDs2 Blackstone Credit led and committed $1.8B to healthcare technology company Business Overview Expertise Other BXSL Deals Inovalon is a provider of c
Slide 27: Our scale has provided a significant pipeline of investment opportunities
SCALE Our scale has provided a significant pipeline of investment opportunities 30+ $4B 80%+ $1B+ deals led by BXC1 potential BXC check of deals sole / lead2 size Blackstone Credit led and committed $3.1B to professional services company Business Overview Scale Other BXSL Deals Guidehouse is a provi
Slide 28: Panel Discussion
Panel Discussion Roger Hoit, Chairman of Private Equity Solutions, Moelis & Company Brad Colman, Head of Healthcare Investing, BXC Viral Patel, Head of Technology Investing, BXC Kristen Paladino, Head of Value Creation, BXC Moderated by Chris Sullivan, Head of Sponsor and Advisor Coverage, BXC This
Slide 29: We believe Blackstone Credit offers differentiated capabilities that cannot be found elsewhere
INTEGRATED APPROACH TO GLOBAL ORIGINATION We believe Blackstone Credit offers differentiated capabilities that cannot be found elsewhere Sponsor Coverage Technology ▪ Global coverage of 200+ sponsors ▪ $29B BXC current commitment 3 ▪ Institutionalizes key relationships ▪ Partner with BXTI Advisor Co
Slide 30: Portfolio companies have full access to Blackstone's Value Creation program
DRIVING VALUE CREATION Portfolio companies have full access to Blackstone’s Value Creation program 90%+ of BXC portfolio companies $3.5B+ illustrative enterprise value $500M+ revenue generated3 through introduced participate in the created across BXC portfolio Blackstone portfolio connections progra
Slide 31: BXC's wide origination network helps drive connections and deal flows
BXSL SOURCING CAPABILITIES BXC’s wide origination network helps drive connections and deal flows Expansive sourcing system BX Life BX Strategic Investment Sciences Partners Dedicated Bank Sponsor Sector Relationships Relationships Financial Verticals Dedicated Advisor Origination Operating Partnersh
Slide 32: BXSL's technology portfolio is broad and diversified
WHERE YOU INVEST MATTERS: TECHNOLOGY BXSL’s technology portfolio is broad and diversified $20T+ $28.6B 70+ market capitalization in the BXC current commitment BXC borrowers across a U.S. alone1 to technology2 diverse set of sub-sectors Large, mature enterprises with stable growth and Classification
Slide 33: BXSL's healthcare portfolio seeks to avoid sub-sectors that have been problematic for public issuers
WHERE YOU INVEST MATTERS: HEALTHCARE BXSL’s healthcare portfolio seeks to avoid sub-sectors that have been problematic for public issuers $7T+ $22.0B 13 market capitalization in the BXC current commitment >$500M positions across U.S. alone1 to healthcare2 BXC2 Large, mature enterprises with stable g
Slide 34: Recent deal focus: HealthComp / Virgin Pulse
TRANSACTION OVERVIEW Recent deal focus: HealthComp / Virgin Pulse Blackstone Credit was sole provider of a large commitment to healthcare company1 BXC Deal Focus Scale BX Platform Incumbency Value Creation 2 Sole lender to a Strong firm-wide Existing lender to Generated $3B merger relationship with
Slide 35: What Lies Beneath: A Deeper Look at Portfolio Management & Underwriting
What Lies Beneath: A Deeper Look at Portfolio Management & Underwriting Michael Zawadzki, Global Chief Investment Officer, BXC This is not an offer or sale of any security or investment product Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund w
Slide 36: Blackstone Credit developed the Office of the CIO to optimize investment and portfolio management
BXC OFFICE OF THE CIO: WHY IT MATTERS Blackstone Credit developed the Office of the CIO to optimize investment and portfolio management across strategies Chief Investment Office 58 dedicated and specialized resources1 managing the full life-cycle of investments Global Committee-Led Processes Drive D
Slide 37: Robust and repeatable global investment process
MAKING BETTER INVESTMENT DECISIONS Robust and repeatable global investment process “Heads up” / Office hours / Investment screening due diligence committee committee Through the Cycle Current Focus Areas Liquidity & free cash flow Elevated rates Quality of earnings Slowing growth Competitive landsca
Slide 38: Focus on "Good Neighborhoods"… …And the "Best Blocks"
TARGETING COMPELLING SECTORS Focus on “Good Neighborhoods”… …And the “Best Blocks” 1% Healthcare 3% Subsectors 8% 15% BXC Core Target Areas ▪ Healthcare IT BXSL BXSL1 Private HC ▪ Life sciences Portfolio4 ▪ Pharma outsourcing 84% ▪ Alt-Site 88% BXC Selectively 21% 2% Attractive Areas 13% ▪? Benefits
Slide 39: Performing fundamental analysis: leveraging BX scale to benchmark investments across sectors
LEVERAGING PROPRIETARY DATA Performing fundamental analysis: leveraging BX scale to benchmark investments across sectors Recurring Revenue Mix 50% 60% 70% 80% 90% 100% 110% Proprietary Net Retention Benchmarking Analysis: BXC 90% 100% 110% 120% 130% 140% 150% 160% Software Portfolio Weak Medium Stro
Slide 40: Firm-wide resources allow us to capitalize on opportunities
CAPITALIZING ON THE POWER OF THE PLATFORM Firm-wide resources allow us to capitalize on opportunities 1 2 3 Inbound from Commitment BX Proprietary Insights Sponsor Secured Technology & Innovations 350+ 160+ 200+ $1.5B companies # of CISOs on Mimecast committed for cross-sell monthly mentions financi
Slide 41: BXSL's portfolio in the current environment
BUILDING STRONGER PORTFOLIOS BXSL’s portfolio in the current environment LTM EBITDA Growth LTM EBITDA Margin Free Cash Flow Conversion Loan-to-Value Strong End Market Tailwinds Withstand Inflationary Pressures Cushion Against Higher Rates Mitigate Multiple Compression 11% 28% 55% 87% 23% 64% 47% 4%
Slide 42: Playing defense while playing offense…
PROTECTING THE DOWNSIDE Playing defense while playing offense… Document Protections1 BXC Capabilities 100% 100% 98% ▪ Dedicated legal documentation team ▪ Proprietary document review process ▪ High focus on collateral protection Protection Against Protection Against Caps on Synergy Asset (IP) Stripp
Slide 43: Leading access to private credit financing market
ACCRETIVE AND FLEXIBLE FINANCINGS Leading access to private credit financing market Scaled Access Broad Market Large and to Capital Coverage Dedicated Team ~$28B financing 40+ bank 20-person team1 portfolio counterparties across BDCs1 across BDCs1 BXSL’s cost of debt is ~15% lower than BDC peer aver
Slide 44: What Goes On / What We Do About It
PROACTIVELY MANAGING THE PORTFOLIO What Goes On What We Do About It Continuous monitoring 24-person1 Team Dedicated to Portfolio Management and Proactive Intervention Quantitative screening criteria Operations Legal / Restructuring Financial Weekly portfolio committee and working group sessions BXSL
Slide 45: Capture the benefits of scale through BXC platform
WHAT’S NEXT? Capture the benefits of scale1 through BXC platform Continued adoption of data sciences and AI Drive financial flexibility and lower cost of capital Enhanced stress testing and risk modeling Proactive engagement with portfolio companies Identify the next thematic waves 1. Subject to Bla
Slide 46: Panel Discussion
Panel Discussion Ana Arsov, Global Head of Private Credit & Co-Head of FIG, Moody’s David Trepanier, Head of Global Credit – Structured Products, BofA Securities Victoria Chant, Co-Head of Capital Formation, BXC Josh Lafer, Portfolio & Asset Management, BXC Moderated by Teddy Desloge, Chief Financia
Slide 47: We believe that BXSL's portfolio fundamentals remain robust
BXSL PORTFOLIO CHARACTERISTICS We believe that BXSL’s portfolio fundamentals remain robust Predominantly First Lien Debt Defensive Structuring Portfolio1 First Lien Debt 98.4% <0.1% non-accrual debt investments2 46.9% average loan-to-value3 Second Lien Debt Equity 1.2% 0.4% Please refer to “Endnotes
Slide 48: BXSL portfolio companies have been well-covered and grown faster compared to the broader market
STRONG CREDIT PERFORMANCE BXSL portfolio companies have been well-covered and grown faster compared to the broader market LTM Interest Coverage LTM EBITDA Growth Year-over-Year % 1.8x 11% 1.5x 4% Private Credit Market 1 BXSL2 Private Credit Market 3 BXSL4 Please refer to “Endnotes” at the end of thi
Slide 49: BXSL's cost of debt is ~225bps less than the coupon paid by BDC peers
LOWER DEBT COST STRUCTURE THROUGH TURBULENT TIMES BXSL’s cost of debt is ~225bps less than the coupon paid by BDC peers on recently issued unsecured debt Today’s Market vs. BXSL’s Cost of Debt Weighted Average 7.2% -31% 4.9% 1 2 Coupon Paid By BDC Peers BXSL Weighted Average Cost of Debt (June 30, 2
Slide 50: Straight to the Source: A Conversation on Private Markets & Private Credit
Straight to the Source: A Conversation on Private Markets & Private Credit Jon Gray, President & Chief Operating Officer, Blackstone Steve Klinsky, CEO & Founder, New Mountain Capital Moderated by Weston Tucker, Head of Blackstone Shareholder Relations 49
Slide 51: The Cross Section: Where Private Credit & Investment Banking Meet
The Cross Section: Where Private Credit & Investment Banking Meet Mohit Assomull, Global Head of Capital Markets, Morgan Stanley Brad Marshall, Global Head of Private Credit, Chairman & Co-CEO of BXSL Moderated by Emily Yoder, Global Head of Strategic Relationships, Blackstone 50
Slide 52: A Word from the Investors: A Conversation on Private Credit and Permanent Capital
A Word from the Investors: A Conversation on Private Credit and Permanent Capital Carlos Whitaker, President of BXSL Jean Hsu, Global Head of Private Debt, CalPERS Joan Solotar, Global Head of Private Wealth Solutions, Blackstone Raj Ahuja, Head of Alternative Investment Strategy, Global Credit, OME
Slide 53: Global private wealth is an $83 trillion market
PRIVATE WEALTH OPPORTUNITY Global private wealth is an $83 trillion market Global Private Wealth Market1 Estimated Alternatives AUM in Private Wealth2 $10T $28T $36T ultra accredited high net ($1M-$5M) $5T worth ($30M+) $83T market size $2T $19T qualified purchaser ($5M-$30M) 2021 2025 2030 Current
Slide 54: BXSL has experienced lower volatility and higher returns than the S&P 500 Financials Index
BXSL VS. S&P 500 FINANCIALS INDEX BXSL has experienced lower volatility and higher returns than the S&P 500 Financials Index Volatility1 Return From November 20, 2018 to September 30, 2023 From November 20, 2018 to September 30, 2023 17.4% 10.9% ~75% ~1.5x return lower volatility 7.3% 4.2% 2 3 S&P 5
Slide 55: BXSL percentage of first lien senior secured and dividend yield vs. peer group
PERCENTAGE OF FIRST LIEN SENIOR SECURED & DIVIDEND YIELD BXSL percentage of first lien senior secured and dividend yield vs. peer group 2 3 First Lien Senior Secured % Dividend Yield 98.4% 11.6% 10.1% 65.6% 1 BDC Peers 1 BXSL BDC Peers BXSL Please refer to “Endnotes” at the end of this presentation
Slide 56: Individual investors have allocated significantly less to alternatives than institutional investors
INDIVIDUAL INVESTOR ALLOCATION TO ALTERNATIVES Individual investors have allocated significantly less to alternatives than institutional investors Alternatives Exposure 1 57% 23% <3% Pensions Endowments Individual Investors Note: The views and opinions expressed by the speakers hereon are their own
Slide 57: Closing Comments
Closing Comments Stacy Wang, Head of Stakeholder Relations, BXSL This is not an offer or sale of any security or investment product Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will achieve its objectives or avoid significant losses. 56
Slide 58: BXSL leads across many key metrics
KEY BXSL HIGHLIGHTS BXSL leads across many key metrics Earnings Momentum Capital Protection LTM Return1,2 Dividend Yield2,3 % First Lien Senior Non-accruals Secured2,3 (at cost)2,4 14.5% 11.6% 98.4% <0.1% vs. 10.9% BDC peers vs. 10.1% BDC peers vs. 65.6% BDC peers vs. 2.4% BDC peers Well Positioned
Slide 59: Endnotes
Endnotes
Slide 60: Endnotes
ENDNOTES Endnotes to “Key Takeaways” Note: Data is as of September 30, 2023, unless otherwise indicated. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will achieve its objec
Slide 61: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Private Credit in the Spotlight” Note: As of September 30, 2023 unless otherwise noted. For illustrative purposes only. May not be representative of any specific investment, all investments of a given type, or of investments generally. Past performance is not necessari
Slide 62: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “BXSL’s Performance” Note: Data is as of September 30, 2023, unless otherwise indicated. Reflects Blackstone Credit’s views and beliefs. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there i
Slide 63: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Key BXSL Highlights” Note: Data is as of September 30, 2023, unless otherwise indicated. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will ac
Slide 64: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Key BXSL Highlights” (cont’d) Note: Data is as of September 30, 2023, unless otherwise indicated. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fun
Slide 65: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Rising Dispersion – Smaller and Larger Companies” As of September 30, 2023. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will achieve its obj
Slide 66: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Rising Dispersion – Sector Selection” Source: Lincoln International Private Market Database as of June 30, 2023. Note: Lincoln segments the private credit market in five industries: healthcare, business services, TMT (technology, media & telecom), industrials, and cons
Slide 67: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “BXC Scale and Depth Differentiates Our Platform” Note: As of September 30, 2023. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will achieve it
Slide 68: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “BXC Scale and Depth Differentiates Our Platform” (cont’d) 5. Numbers presented are since inception of the Value Creation program in 2016. Data presented is based on internal Blackstone data recorded and not from financial statements of portfolio companies. Represents (
Slide 69: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Total Fees and Expenses” Note: As of September 30, 2023. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will achieve its objectives or avoid si
Slide 70: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “BXSL is Well Positioned as a Premier BDC” Note: Reflects Blackstone Credit’s views and beliefs. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund
Slide 71: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Our Origination Edge” 1. As of September 30, 2023. Assets under management (“AUM”) are estimated and unaudited. Blackstone Credit and Insurance AUM is a combined figure inclusive of Blackstone Credit (“BXC”), Harvest Fund Advisors LLC, Asset Based Finance, Blackstone I
Slide 72: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Innovation” As of September 30, 2023 unless otherwise noted. 1. Subject to Blackstone's policies and procedures regarding information walls, management of conflicts of interest and regulatory limitations. 2. This number represents the amount of introductions across Bla
Slide 73: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Driving Value Creation” 1. This number represents the amount of introductions across Blackstone Credit portfolio companies and is not limited to introductions made to BXSL portfolio companies, which may have a lower participation rate or be significantly lower. All Bla
Slide 74: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Where you Invest Matters: Technology” Note: BXSL is classified as a non-diversified fund for purposes of the Investment Company Act of 1940. Diversification is not a guarantee of either a return or protection against loss in declining markets. As of September 30, 2023
Slide 75: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Where you Invest Matters: Healthcare” Note: Diversification is not a guarantee of either a return or protection against loss in declining markets. As of September 30, 2023 unless otherwise noted. This is not an offer or sale of any security or investment product. Past
Slide 76: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Targeting Compelling Sectors” Note: Healthcare “Best Blocks” subsectors reflect Blackstone Credit views and beliefs based on historical data. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and t
Slide 77: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Building Stronger Portfolios” Note: This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will achieve its objectives or avoid significant losses. Inc
Slide 78: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Building Stronger Portfolios” (cont’d) 7. Weighted average LTV across January 1, 2022 through June 30, 2023 for US LBO transactions per Pitchbook LCD LBO Quarterly Report. 8. BXSL LTV as of September 30, 2023. Includes all private debt investments for which fair value
Slide 79: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Accretive and Flexible Financings” 1. Reflects financing portfolio and bank counterparties across BXSL and BCRED. 2. Cost of debt reflects weighted average interest rate on all borrowings outstanding, including unused fees. For the peers for whom similar information is
Slide 80: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Strong Credit Performance” 1. As of September 30, 2023. Private credit market benchmark figure is sourced from Lincoln database. 2. Interest coverage ratio is estimated as the ratio of LTM EBITDA, to cash interest paid over the last 12 months for each respective portfo
Slide 81: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Percentage of First Lien Senior Secured & Dividend Yield” Note: The views and opinions expressed by the speakers hereon are their own and do not reflect the views or opinions of OMERS Administration Corporation, its affiliates, related parties, directors, officers, emp
Slide 82: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Key BXSL Highlights” Note: Data is as of September 30, 2023, unless otherwise indicated. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fund will ac
Slide 83: Endnotes (cont'd)
ENDNOTES (CONT’D) Endnotes to “Key BXSL Highlights” (cont’d) Note: Data is as of September 30, 2023, unless otherwise indicated. This is not an offer or sale of any security or investment product. Past performance is not a guarantee of future results and there is no assurance that any Blackstone fun
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