Blackstone Private Credit Fund Posts First Monthly Loss Since 2022

Blackstone Inc.'s Private Credit Fund Posts First Monthly Loss in Over Three Years

BCRED, the $83 billion flagship private credit fund of Blackstone Inc., recorded a 0.4% loss in February, marking its first monthly decline since September 2022. This performance setback comes amidst a weakening market, with the $1.8 trillion private credit market experiencing widespread declines.

BCRED has faced elevated redemptions in recent quarters, driven by concerns over valuations and underwriting standards in credit markets, as well as the potential disruption of software businesses by artificial intelligence. The fund's performance was flat for the first two months of the year, following an 8% gain in 2025.

According to a message to financial advisers, Blackstone attributed the February loss to wider spreads across public and private markets, as well as unrealized marks on individual names, including Medallia. However, the firm pointed out that BCRED outperformed the leveraged loan market by around 0.4 percentage points in February and 1 percentage point since the start of the year.

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BCRED has delivered strong performance for its investors, with a 9.5% annualized total return since inception for Class I shares. The fund was established in January 2021 and has faced increased scrutiny over valuations and underwriting standards.

In a notable move, Blackstone used its own cash as well as contributions from senior leaders to meet redemption requests for BCRED that exceeded the fund's previously set limit of 5% of net assets. The loan to Medallia Inc., a software company owned by Thoma Bravo, has been marked down to 78 cents on the dollar, highlighting sharp differences in valuations across managers.