Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Q4 2022 Earnings Presentation
24 slides from Blackstone Secured Lending Fund's earnings presentation, March 2023
Slide 1: Blackstone Secured Lending Fund (BXSL)
Secured Lending Blackstone Secured Lending Fund (BXSL) MARCH 2023 Note: All data as of December 31, 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, or th
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 LOANS TO U.S. COMPANIES 0.75% 9.3% 10.1% 98% 0% management fee regular annual total net return first lien assets on for initial 2 years dividend yield(2) since inception(3) senior secured non-accrual post-IPO, then 1%(1) Shareholder alignme
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: 17 year track record in U.S. Direct Lending and BDCs
BLACKSTONE Blackstone has a long-standing track record investing in U.S. Direct Lending 17 year track record in U.S. Direct Lending and BDCs Preeminent Alt Scale and Large Expertise & Sector Blackstone Credit Manager Transactions Focus Advantage $975B 30 518 112 AUM including $269B $1B+ private deal
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 We Believe BXSL is Well-Positioned on Key Metrics for the Current Environment Key Median of BXSL Interest rates represent a meaningful near-term Category Metrics BXSL Large BDCs Rank tailw
Slide 6: Growing dividend well-covered by NII
DIVIDENDS Growing dividend well-covered by NII Declared 17% dividend increase to $0.70 per share beginning in 1Q’23 Quarterly Dividend, NII Per Share and Leverage 10.8% implied 1Q’23 regular dividend yield(1) +40% increase to the regular dividend since IPO 1.35x average debt-to- equity in 4Q’22(2)
Slide 7: BXSL well positioned to benefit from a rising rate environment
IMPACT FROM RISING RATES We believe BXSL is well positioned to benefit from a rising rate environment ~100% of debt investments are floating rate and 58% of liabilities are fixed(1) NII increased to $0.90 from $0.80 in the prior quarter and would have been $0.96 if December 31st base rates were
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 post-IPO steps up to 1%; 15% incentive fee rate steps up to 17.5% in
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) 0.6% 1.5% 1.0% 0.4% BXSL Peer Median BXSL Peer Median Low Incentive Fees(1) Low Cost of Leverage(1)(2)(3) 20% 5.0% 17.5% 4.5% BXSL Peer Median BXSL Peer Median Note: Further notes a
Slide 10: Portfolio focused on "good neighborhoods"
HIGH-QUALITY PORTFOLIO Portfolio focused on “good neighborhoods” Industry Exposure at FMV (% of total portfolio) 47% loan-to-value(1) Software, 15% Remainder of Portfolio, 27% (25 Industries)(2) 1% Health Care Providers weighted average & Services, 12% issuer concentration Transportation Infrastruct
Slide 11: BXSL portcos larger, faster growing, more profitable
PORTFOLIO POSITIONING BXSL portcos are generally larger, growing faster, and more profitable than the typical private credit borrower ~2x the Scale ~2x the Growth ~35% More Profitable LTM EBITDA LTM EBITDA Growth Year-over-Year LTM EBITDA Margin $167M 28% 17% 21% $78M 9% Private Credit BXSL Private
Slide 12: Blackstone Credit is driving the trend of $1B+ private transactions
BLACKSTONE CREDIT IS 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) Increasing Trend of $1B+ Deals Being Done in Private
Slide 13: Reinventing the lender value proposition
REINVENTING THE LENDER VALUE PROPOSITION Benefits of being part of the largest alternatives platform Blackstone Network Leverage Expert Enhance Revenue Optimize Costs Knowledge $300M+ ~$249M 112 revenue generated(1) through the total annual cost reduction(1)(2) internal Blackstone resources(3) Black
Slide 14: Historically stable low-cost financing sources
HISTORICALLY STABLE LOW-COST FINANCING SOURCES Flexible and efficient liability management Diversified Financing Sources with Significant Liquidity ($ in millions) $131 Available Cash 74% of assets funded by $987 Excess Borrowing Capacity unsecured debt and equity $3,200 Unsecured Notes 4.3% weighte
Slide 15: 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 fourteen 150% Dividend Coverage quarters dividend coverage ratio in 4Q’22 Low manager fees, includin
Slide 16: Historical NAV Trend
HISTORICAL NAV TREND Growth in NAV per share since inception and strong quarterly dividend payout $10.17 per share of value created for investors since inception, representing a 49% total return(1) Net Asset Value and Cumulative Dividends Since Inception(2) $35.17 $32.60 $29.50 $28.02 $9.24 $6.33
Slide 17: Footnotes
Footnotes Blackstone | 17
Slide 18: Notes
NOTES Notes to Page 2 Data as of December 22, 2023. For illustrative purposes only. 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 Oc
Slide 19: Notes (cont'd)
NOTES (CONT’D) Notes to Page 6 Historical dividend rates may not be indicative of future period dividend rates. Leverage represents BXSL ending debt to equity for the periods shown. Past performance is not necessarily indicative of future results. 1) Dividend yield is calculated as the announced 1Q’
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) Conflicts of Interest. There may be occasions when a Fund’s general partner and/or the investment advisor, and their affiliates will encounter potential conflicts of interest in connection with such Fund’s activities including, without limitation, the alloca
Slide 23: Important Disclosure Information (cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) Index Comparison. The volatility and risk profile of the indices presented is likely to be materially different from that of a Fund. In addition, the index employs different investment guidelines and criteria than a Fund and do not employ leverage; as a resu
Slide 24: Important Disclosure Information (cont'd)
IMPORTANT DISCLOSURE INFORMATION (CONT’D) Realized and Unrealized Returns. Realized or partially realized returns represent both (i) proceeds from investments that are realized and have been disposed of and (ii) realized proceeds from unrealized investments, such as current income, financing proceed
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