Blackstone's Private Credit Fund Sees Increased Redemption Requests
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
- Increased Redemption Requests: Following a rise in redemption requests from 8% to 10% for Blackstone's (BX) $79 billion private credit fund BCRED, concerns about liquidity risks have intensified, potentially impacting the fund's long-term return capabilities.
- Overview of Private Credit: Private credit refers to loans provided by non-bank entities, which have surged in popularity as banks have reduced lending, attracting investors seeking double-digit returns, though the sector's lighter regulation poses higher risks.
- Retail Investor Access: Launched in 2021, BCRED allows retail investors to participate with a low entry point of $2,500, while most funds cap quarterly redemptions at 5% to maintain liquidity and focus on long-term returns.
- Software Investment Risks: With 26% of BCRED's investments in software companies facing risks from AI technology rapidly replicating products, although the loan portfolio's enterprise value remains twice that of the loans, investors should approach this volatile asset class with caution.
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Analyst Views on BX
Wall Street analysts forecast BX stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 115.350
Low
166.00
Averages
176.60
High
205.00
Current: 115.350
Low
166.00
Averages
176.60
High
205.00
About BX
Blackstone Inc. is an alternative asset manager. Its asset management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Its Real Estate segment comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. Its Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically focused Corporate Private Equity funds, core private equity funds, an investment platform, and others. Its Credit & Insurance segment consists of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset-based credit. Its Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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