BCRED Reports NAV Decline, Rising Unrealized Losses in 2025 Preceding Record Q1 Redemption Surge

Blackstone Private Credit Fund’s annual report for fiscal year 2025 discloses a steady decline in net asset value, a sharp increase in unrealized losses, and rising non-accrual rates over the course of the year — the financial trajectory that preceded the record redemption surge AltsWire reported in early March 2026.

AltsWire reported March 3 that BCRED investors requested redemptions totaling 7.9% of the fund’s shares in the first quarter of 2026, equivalent to roughly $3.8 billion. Blackstone honored all requests in full by upsizing its quarterly repurchase cap to 7% and injecting $400 million from the firm and its employees.

The 10-K, filed with the Securities and Exchange Commission for the fiscal year ended Dec. 31, 2025, provides the full-year financial context behind that event. The fund’s net asset value per share declined in eight of the 12 months of 2025, falling from $25.42 at Jan. 31 to $24.79 at Dec. 31 — a drop of $0.63 per share, or 2.5%, over the year. The slide was uninterrupted from May through year-end.

Net unrealized losses widened substantially, totaling $522.9 million for 2025 compared with $97.3 million in 2024. The increase was driven primarily by declines in the fair value of certain debt investments, with portfolio fair value falling 0.6% as a percentage of principal, “driven primarily by changes in certain portfolio company fundamentals and broader economic conditions,” the filing states. Net realized losses also increased, reaching $372.8 million in 2025 versus $126.7 million the prior year.

The fund’s non-accrual rate — the share of investments on which income recognition has been suspended — rose to 0.6% of total investments at amortized cost as of Dec. 31, 2025, up from 0.5% at year-end 2024 and 0.1% at year-end 2023. At fair value, non-accruals represented 0.4% of total investments, compared with 0.2% a year earlier.

Payment-in-kind income — interest that borrowers defer by adding it to outstanding principal rather than paying cash — accounted for 6.3% of total investment income in 2025, up from 5.8% in 2024, and represented 11.3% of net investment income for the year.

Despite the headwinds, BCRED’s core income metrics remained strong. Total investment income grew 13% to $7.6 billion for 2025, driven by portfolio growth that more than offset a lower weighted average yield. Net investment income after taxes was $4.26 billion. The weighted average yield on performing debt investments at amortized cost was 9.2%, down from 10.1% a year earlier, reflecting rate cuts and tighter spreads.

The fund ended 2025 with $82.2 billion in total investments at fair value across 700 portfolio companies, up from $69.0 billion across 603 companies at year-end 2024. Total assets stood at $86.0 billion, with net assets of $47.6 billion and outstanding debt of $35.1 billion. The asset coverage ratio was 235.7%, well above the 150% regulatory minimum required under the Investment Company Act of 1940. Available liquidity — cash plus unused credit facility capacity — was approximately $9.2 billion as of Dec. 31, 2025.

On a full-year capital flow basis, BCRED raised $12.4 billion in new subscriptions in 2025 while repurchasing $3.0 billion in shares, for net inflows of approximately $9.4 billion. The fund made $30.1 billion in new investment commitments during the year, of which $26.9 billion was first lien debt. Average portfolio company EBITDA was $264 million at year-end, up from $234 million a year earlier.

The quarterly repurchase figure disclosed in the 10-K — $2.1 billion, or 4.5% of outstanding shares in Q4 2025 — is distinct from the Q1 2026 redemption event previously reported by AltsWire. The Q4 2025 repurchase was conducted within the fund’s standard 5% quarterly cap with all requests satisfied in full. The subsequent Q1 2026 surge, representing 7.9% of shares, required the board to upsize the cap and deploy firm and employee capital to meet full demand.

As of March 9, 2026, BCRED had approximately 144,357 shareholders of record across its three share classes — 64,194 in Class I, 79,975 in Class S, and 188 in Class D.

BCRED is an externally managed nontraded BDC advised by Blackstone Private Credit Strategies LLC, a subsidiary of Blackstone Inc. (NYSE: BX). It invests primarily in floating rate first lien senior secured loans to U.S. middle market and large corporate borrowers.

Visit the AltsWire directory page.