Blackstone Private Credit Fund Holdings Affected by Medallia Loan Markdown
Blackstone Secured Lending Fund (NYSE: BXSL), Blackstone’s publicly listed business development company, recently further reduced the valuation of its largest investment, a private loan to Thoma Bravo-backed Medallia. This action comes as the enterprise software company reportedly continues to underperform.
As of June 30, the value of the Medallia loan was marked down to approximately 87 cents on the dollar, a decrease from 89 cents at the end of the first quarter and 94 cents in late 2024. This markdown lowers the value of Blackstone’s $380 million exposure to roughly $338 million.
The Medallia position is not only a major holding for BXSL, representing 5.37% of its net assets, but it is also one of the largest investments within Blackstone Private Credit Fund, or BCRED, the firm’s non-traded BDC covered by AltsWire.
In the second quarter of 2025, Blackstone reported that sales in the wealth channel increased 30% year-over-year to $10 billion and that BCRED led the way, raising $3.7 billion underpinned by performance and 10% net returns annually since inception.
Blackstone initially led a $1.8 billion debt financing package for Medallia in 2021 to support its acquisition by private equity firm Thoma Bravo. The debt was structured as a recurring-revenue loan, often used in software transactions, with a 6.5% spread over base rate, with 4% paid in kind – a feature that allows the borrower to defer cash interest payments.
Other lenders to Medallia included Apollo Global Management Inc., Antares Capital, HPS Investment Partners, and Monroe Capital.
The markdown followed recent leadership changes for Medallia. In January 2025, the company appointed Mark Bishof as chairman and chief executive officer, succeeding Joe Tyrrell, who had been in the role for about a year.
More recently in April 2025, a group of prominent private lenders and asset managers – also led by Apollo and Blackstone – assembled a $4 billion loan package to back other activity by private equity firm Thoma Bravo, i.e., its acquisition of several digital aviation assets from Boeing Co.
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