Blackstone Secured Lending Fund reported $754 million of investment sales and repayments during the second quarter of 2026, substantially exceeding new investment activity as the fund maintained a $13.4 billion predominantly senior-secured private credit portfolio.
New investment fundings totaled $312 million during the quarter, compared with the $754 million of investments sold or repaid. New investment commitments at par totaled $154 million.
The lower deployment relative to repayments reflects what management described as a disciplined approach to new investments. Blackstone Secured Lending Fund, or BXSL, invests primarily in loans to private U.S. companies and had investments in 313 portfolio companies at the end of June.
Credit seniority remains a defining characteristic of the portfolio. Approximately 96.8% of investments were first-lien senior secured debt, while another 1.9% consisted of second-lien debt. Average loan-to-value was 51.9%.
The portfolio was also highly exposed to floating interest rates, with 96.3% consisting of floating-rate debt. Excluding non-accrual investments, 99.3% of debt investments were floating rate.
Non-accrual investments represented 1.8% of the portfolio at fair value at quarter-end. Blackstone said no new assets were placed on non-accrual during Q2, while borrower EBITDA continued to show stable growth.
BXSL generated $174 million of net investment income, or $0.75 per share, compared with $0.77 per share both in the previous quarter and in Q2 2025. Net income was $9 million, or $0.04 per share.
The fund declared a quarterly dividend of $0.77 per share. Based on quarter-end net asset value, that represented a 12.1% annualized dividend yield. Dividend coverage was 97%, based on the relationship between $0.75 of quarterly NII per share and the $0.77 dividend.
Net asset value totaled approximately $5.9 billion, or $25.53 per share, at quarter-end. BXSL reported a 10.6% annualized total return since inception and a 0.4% total return during Q2.
The weighted average yield on performing debt investments increased slightly to 9.4% from 9.3% at the end of the previous quarter. BXSL also maintained approximately $2.8 billion of liquidity through unrestricted cash and undrawn debt capacity.
KEY QUOTES:
“BXSL reported healthy second-quarter earnings with no new assets placed on non-accrual. During the quarter, new investment activity exceeded $300 million, while repayments increased to over $700 million.”
“Our portfolio, which is primarily composed of first-lien senior secured debt, remains well positioned, underpinned by stable EBITDA growth across our borrowers. We maintained a disciplined approach to deployment, leveraging the advantages of Blackstone’s scale, sourcing capabilities, and asset management expertise for the benefit of our shareholders.”
Brad Marshall, CEO of Blackstone Secured Lending Fund
