BXSL Repayments Outpace Originations as Portfolio Shrinks

The Tip Desk · August 6, 2026 · 3 min read

Net funded investment activity was a $442 million outflow as second-quarter net investment income slipped to $0.75 a share.

Blackstone Secured Lending Fund (BXSL), a specialty finance company that invests primarily in the debt of private U.S. companies, posted a $442 million net funded investment outflow in the second quarter as repayments and sales far outstripped new originations.

Proceeds from sales and repayments were $754 million, compared with $185 million a year earlier. New investment commitments at par were $154 million, with fundings of $312 million. Chief Executive Officer Brad Marshall said new investment activity exceeded $300 million while repayments increased to over $700 million, and that the company maintained a disciplined approach to deployment.

The fund added five new portfolio companies and exited eight. Average new investment commitments were $39 million, with a weighted average yield of 9.2% on new investments. Weighted average yield on investments fully sold or paid down was 9.3%.

Investments at fair value were $13.253 billion at June 30, 2026, down from $13.364 billion a year earlier. Net asset value was $25.53 a share, versus $27.33 a year earlier. Total return based on NAV was 0.4% for the quarter, versus 2.3% a year earlier. The fund reported healthy second-quarter earnings with no new assets placed on non-accrual.

Net investment income was $174 million, or $0.75 a share, compared with $176 million, or $0.77 a share, in the year-ago quarter. NII per share also declined from $0.77 in the immediately preceding quarter. Net income was $9 million, or $0.04 a share, compared with $155 million, or $0.68 a share, a year earlier, as net realized and unrealized losses widened to $(137) million from $(11) million.

Total investment income was $1.362 billion, versus $1.398 billion a year earlier. Interest income was $102 million, versus $83 million. Total expenses before tax expense were $618 million, versus $649 million.

The regular dividend held at $0.77 a share, with coverage of 97% and an annualized NII return of 11.4%, versus 11.2% a year earlier. The board declared a third-quarter 2026 dividend of $0.77 a share, matching the second-quarter regular dividend, payable on or about October 23, 2026, to shareholders of record as of September 30, 2026.

The portfolio numbered 295 companies. One percent of investments were on non-accrual at fair value, or 3.6% of amortized cost. First-lien senior secured debt was 96.8% of the portfolio. Weighted average yield on performing debt and income-producing investments at fair value was 10.2%, versus 9.4% a year earlier; the fund reported 9.4% at quarter-end versus 9.3% at the prior quarter-end. Average loan-to-value was 51.9%, versus 46.9% a year earlier.

Ending debt-to-equity was 1.13x, versus 1.28x a year earlier, with average debt-to-equity of 1.13x versus 1.30x. Total debt outstanding, carrying value, was $7.091 billion, versus $7.536 billion. Liquidity in unrestricted cash and undrawn debt was $2.8 billion, with $2.6 billion available to borrow. Total all-in cost of debt was 5.05% in the quarter, with a weighted average maturity on debt facilities of approximately 3.3 years.

Marshall said the portfolio, primarily composed of first-lien senior secured debt, remains well positioned, underpinned by stable EBITDA growth across borrowers. The company is designed to provide steady earnings while mitigating risk, with a 96.3% floating-rate debt portfolio focused on senior secured debt investments.

Largest industry exposures were software, health care providers and services, professional services and insurance. No single issuer accounted for more than 3% of the portfolio. Top names included Snoopy Bidco and JSS at 3% each, with Guidehouse, Auctane, Cambium, Corfin, Bazaarvoice and Navigator at 2% each.

The fund is externally managed by Blackstone Private Credit Strategies LLC. Blackstone Inc. had over $1.3 trillion of assets under management as of June 30, 2026.