Blackstone’s flagship private BDC is facing a record redemption queue of 7.9% of its total value as investors look to exit amid wider industry unease.
Blackstone Private Credit Fund (BCRED) filed an amendment to its tender offer statement with the SEC yesterday (2 March), announcing that it will be fulfilling all of its repurchase requests this month.
The BDC has a fair value of $82bn, according to the filing, suggesting that the total redemption queue is likely just north of $6.5bn.
To meet the requests, Blackstone is upping its tender offer from the typical 5% to 7%, which is “the maximum amount permitted without changing the terms of the repurchase offer,” the filing stated.
The remaining 0.9% is being backstopped by Blackstone employees with commitments to the fund themselves. Around $150m will go into the main fund, with a further $250m being put into an existing BCRED feeder fund. This buying of shares is being done at the same terms as all other investors and is slated to offset the repurchase amount requested from the feeder fund, the filing stated.
BCRED also received $2bn of new subscriptions this quarter, which will add to the $8bn of liquidity the vehicle...
