Blackstone Secured Lending Fund Reports 94% Profit Drop

The Blackstone Secured Lending Fund, a publicly traded private credit fund managed by Blackstone Inc., reported a 94% drop in second-quarter net income. Earnings fell to $9 million from $155 million during the same period a year earlier, driven by $137 million in unrealized losses and $28 million in realized losses stemming from markdowns in the value of its holdings.

The fund's net asset value declined to $25.53 per share, falling short of analyst estimates. Despite the profit decline, net investment income remained stable at $174 million. Loans on non-accrual status accounted for 3.6% of the portfolio, a figure lower than some analyst projections.

Operational activity during the quarter included a $100 million capital injection into Medallia Inc. following its takeover by a Blackstone-led consortium in June. The fund also experienced a contraction in its balance sheet, as repayments of over $700 million outpaced new commitments of just over $300 million.