BXSL - Earnings call transcript Q4 2024 | Blackstone Secured Lending Fund

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Operator

Good day, and welcome to the Blackstone Secured Lending Fourth Quarter and Full Year 2024 Investor Call. Today's call is being recorded. [Operator Instructions]

At this time, I'd like to turn the conference over to Justin Farshidi, Principal for Blackstone Credit and Insurance. Please go ahead.

Justin Farshidi

you. Thank welcome Lending and Conference Fourth Blackstone Call. to morning, Funds Secured Quarter Good

are Executive Chief Marshall, Co-Chief me management Brad Joining today Co-Chief other of Carlos President; team. and Executive Whitaker, Officer; Teddy Officer; Desloge, Financial members the Officer; Bock, Jonathan

we the with presentation Earlier of website, Shareholder results, Resources issued of which of press XX-K, www.bxsl.com. our section filed both a are our release today, a and available on our

be referring presentation to call. will We throughout that today's

forward-looking that may these you undertake are this actual remind statements, to include the and which to statements. and may control results. like differ of outside update I'd any duty not uncertain call from We firm's do materially

filed material without consent. For may affect some of please duplicated could earlier of of not audio be see XX-K results, today. is cast Blackstone risks Factors This the and copyright the that Risk Form section our

With the that, I'll turn over to Marshall. Brad call

Brad Marshall

everyone. joining and Thank for our Thanks Justin, call. good you, morning,

begin Teddy, into Before and details dive will market quarter on fourth on our we few environment. Carlos view results the with and high-level the current comments I with John, a

Turning income, to value, and net reported Slide our to issued highlighted strong peers, levels deployment. solid traded active newly tight at compared increased liabilities market asset total record BDC X. by its performance quarter, continued BXSL investment another credit

of Looking at these each in detail.

than consecutive contractual $XX.XX. rather annualized for the a Our increased equity net income $X.XX investment asset quarter, income fees and overwhelmingly or value by to per income. share return Net on XX.X% from share made NII quarter represented or of ninth this per $X.XX is dividend up onetime

revolving weighted over which a spread million, all through $X.X bonds, a amount at nearly we reduced portion SOFR, CLOs swapped average XXX of we compared XXX of by With of also at peers, BDC while SOFR, to had upsizing regard our liabilities, a points basis aggregate of billion spreads of of tight $XXX traded spread to new lines market weighted our into credit which over and basis points debt an average a spread. issued

diverse allowing rate this on components, stack liability to the continues offset to be base Our help with rates asset side quarter. reduced floating us

remained On and X.X% expenses, fair which market strong as credit traded in non-accrual G&A quarter. on average cost us lastly, well BXSL X.X% to lowest percentage fee cost our our respectively, a third X.X%, management across with value, high-quality the BDC of below assets. and of NAV among allows X.X% quality investments of has BDC lowest traded the at peers, on of peers the and at focus And

with a are us above valuation, relative related. compared to NAV what are dividend higher since delivered traded and of stability bias peers. performance cost All an and we on leads to attractive high-quality our leading is which of cost BDC capital low has quality, capital. inception. credit these while One, to cost peers a traded BDC the lowers And still allows regular three, our focus capital what towards further we structure Two, premium strong of portfolio return performance believe our our equity our attractive borrowers our low-cost delivering believe better to of

fifth saw billion of we As $X plus and $X.X ramp commitments, billion had In consecutive up in XXXX in quarter, we of anticipated that BXSL quarter, activity we an for commitments. quarter fourth throughout positioned discussed last the we investment deal our quarter-over-quarter.

mid-XXs high-quality XX% we spread X% at between XXX $X.X all-in believe XXXX. active lend are investment above ranging nearly billion near in boards, to what we in yields at since fundings, And points. average had basis the fourth also loan-to-value a demonstrated at to as continue We quarter and to most an new quarter the X-year

relationships resources, company BDC elect that a to of traded returns spread the of deals Blackstone's This deliver our diverse assets LTV to credits, spread. BXSL, for a the neighborhoods we hallmark larger competitive investors historically to is compared other middle our times, into with scale At invest at and a of reach taps portfolio in peers. in in to times, may good market. ratios may we greater tighter And see attractive at the

allows up serve. us valuable Our and scale we and to to down companies us which market, makes we clients counterparty a play believe portfolio

capital a improves for from forward outlook the the cost suggests Looking pro-growth as U.S. are positive and adopts pro-deregulation. and lows policies potentially administration recovery that and M&A is BXSL, the historical of

an And both Private credit capital sponsors. exists private market with quality credit today excited with for active continue financed tightened, are come XXXX, while structures what for is fund a We companies our year. foundation and to a this has major and private have investors for that the by of we tailwind the significant believe equity powder spreads dry see our lays tied this to to improve. and

pass that, to Jon. colleague, With over I'll my

Jonathan Bock

Slide X. XX borrowers investments the ended quarter a of adding in to with fair new over turn billion $XX.X let's $XX value increase X% our totaling portfolio, from now and companies. at And XXX Brad. while that's We you, to billion Thank QX, over

comprised of capacity lean ticked into and prior increased borrowing compared our credit toward and X position revolving to to our our leverage to leverage remaining ABLs across facilities, respectively, up cash quarter middle available pipeline. our the and X.XXx, of meant $X.X of slightly target including liquidity X.XXx. an expanded Ending at billion average X.XXx range We to

our expectations another quarter, flow last testament at our stood to position context, $X.X deal liquidity 'XX. billion, for for Now

XX.X% The assets averaged quarter and Our yield on this fundings new repaid on compared quarter. at performing investment debt and respectively. XX.X% during was XX.X%, and debt the sold weighted average fair X.X% investments yields to end value quarter last

of XX% loan-to-value senior XX%. average generally are these capital XX% by by equity BXSL's take Now financial portfolio Slide sponsors, to are first of loans the owned and significant at a who look on X. demonstrated companies let's loans, lien value of those have investments in structures secured an in

million, averaging also Xx Our companies the strong International Lincoln X% of that's be And than has increasing to that year. a from last believe we portfolio larger private EBITDA database. the what market over LTM in $XXX base

evidenced opportunities performance size the a relative counterparts by investments come evaluated seen as of EBITDA our year, spectrum, we've across strength lower we to bedrock this that's smaller and have of terms in although Now companies, higher from portfolio of defaults. larger continued and our growth

EBITDA over credit portfolio in seen an the or basis. private line BXSL's have growth more on companies measured broader by database rates profitability Lincoln XX% higher LTM as with margin market and

When it's speaking matters, only that to strength consistency. performance, not portfolio but

and importantly, of portfolio strategy company our performance XXXX. talent we've process a consistency and volumes the investment to commitment BXSL to believe disciplined funds we our Our launched demonstrated of the both selection when foundational people. Most we speak in our

we traded secured on lien rate of X.X% average last view X.X% our at focus rate Our to senior for is as first of and a place and industries defensive very compared further evidenced low this is cost lower what BDC investors, from default by nonaccrual debt our peer quarter.

coverage. which private X.Xx We the continue to on QX. to last coverage for the EBITDA over importance coverage again LTM the LTM credit interest Lincoln X.Xx the companies BXSL EBITDA emphasize compares XX in average market broader of portfolio for average at in QX favorably database was based months

at loans, X% of share revenue the BXSL XX%. Looking Lincoln fair at Xx value recurring is of coverage, the portfolio interest excluding market the private at versus below index credit

the with investments, Turning of senior debt investments the loans. amounts positions lien LTVs significant first secured quarter they're capital below during new private average XX%, of beneath were XX% to junior our new meaning

And I'll conclude with amendment and some our recent documents points on activity.

XX% highly portfolio position extensions, underperforming basis terms. we add-ons, our remain was below and As marked Besides activity incremental amending private DDTL especially were or amendments, M&A, as focused immaterial with additional by economics. the with by on quarter-over-quarter than leading these tightening one XX negotiate a borrowers to of fewer matters reminder, was lender, these amendment associated with QX. points agreements, with Nearly of an document XX along lender down associated of Amendment XX documents protections. accounting technical investment quarter in count featured size credit when all only for changes control and we amendments BXSL's this the

to colleague, turn like Carlos. to I'd that, with it And my

Carlos Whitaker

Thanks, Jon.

Slide its X. per distribution of dividend to Turning $X.XX BXSL maintained share.

you this and steady, regular high-quality As focused remain well-covered yield to see, expect continue. dividends, delivering to can on we we approach shareholders through

managers quarter, offering. by selective our demonstrated last are volumes be we and to deployment about new Earlier, optimistic credit potential of of we for with our solutions, continue M&A picture future believe fundings mentioned and platform XXXX. can of level borrowers capable the in be we detailed few We As provide investment which the scale QX. our

flow, For example, large content sticky significant leading management free a billion customer in for a characteristics collaboration business $X Dropbox, see BXCI led This and generates publicly cash debt prospects. has and lending traded our we platform. and financing base a

XX%, under of ratio loan-to-value sizable implied an cushion. us with transaction equity the closed We providing with

of options, market we ranges Given financing access a ability chose partner speed. to and Blackstone large-scale and certainty broad financing believe company customized with the capitalization price because to our to provide solution Dropbox's large of with

see That said, of we to team. market large-cap to investment market broad reach middle platform of the our across our the opportunities segments due also and

a For a consumer services by financing with million $XXX instance, sub sponsor. of owned for we led middle-market a business EBITDA,

for from the attributes $XXX we $XXX our growth in investments sustained services-focused the compared was look companies in the median and portfolio. market generally models. of to Diving fragmented has recurring company weighted EBITDA a in customer The EBITDA average deeper, base benefits a business seen services, and million for new premium private million

across look to across broad for spectrum reach attractive large-cap at we believe loan space. and are with risk-adjusted we high-quality investment value the Again, market size transactions and lower opportunities to returns our middle the what

over turn it Teddy. With I'll that, to

Teddy Desloge

over our the on XX. BXSL's Thanks, X% in up fourth Carlos. million since investment inception. terms, Slide was net dollar or share year-over-year highest with amount dollar per I'll $X.XX and income $XXX quarter, start operating second In the results

for increased income. the year-over-year, for $XX record XX% quarter, driven or fund up by investment Total million income was the a interest

we excluding Interest group. fees represented life each the As OID fees term. over of earned and which total the payment dividends believe kind, income for taking in over provides loan in amortized XXX% a versus reminder, longer investment upfront, over stability income, the of of greater XX% we

majority of over to share assets. primarily Slide fair up per the ended $XX.XX Moving on fundamentals over up our investments $XX.XX debt earnings at issuance sheet of value, and portfolio, across and stable quarter $XX $X.X We from net the NAV with quarter, total NAV. to above billion last excess $X driven XX. of portfolio total balance share by of billion X.X% increased billion outstanding nearly our

Slide to Moving XX.

active basis, BXCI of quarter and December we committed most committing earmarked estimated XX. additional addition, BXSL billion quarter the outlined, million funding by $XXX an over $X.X on in the and a as deployment $X.X BXSL In billion since saw XXXX Brad for approximately as

of million of investment up the in with over The net year-over-year. X% $X.X of we the in $XXX quarter look funded the XX% fair a repayments value rate billion, repayment in activity was volumes to as approximately increase markets saw we And XXXX XXX% turnover Notably, capital forward, portfolio we a M&A quarter more at environment. active portfolio to compared for XXXX. with expect

debt rate Next, drawn profile, not we than view that Slide to a as XX advantage elevated from X.X% on which X.XX%, of includes weighted bonds diverse in average contributed environment and and These overall of X% an attractive key quarter. which of a unsecured last interest our rate borrowings XX% unsecured have bonds in our less average weighted down an fixed liability outlines coupon swapped. are

also our performing investments of yield on value average a weighted to at XX.X%. This debt fair compares

important X credit of corporate positioning from to While and portfolio X a QX, notch maintained grade and we conservative BDCs XXXX. Blackstone, investment to ratings remember providing Fitch In by to became two it's BaaX in we Moody's full construction, are liability this upgrade earned which structure. also we rating, of testament X both with quarter, our defensive a a disciplined approach managed our

debt the We million at to funded cost post the or issuance, optimize quantum priced benchmark XXX million over X.XX% an average December, issued points were relevant BDC capital. relevant and X.X-year issued growing at With by treasury years. XXXX, of tightest on rate. able the our demand maturity coupon our tap which was a X.X until we facilities benchmark have have over Further, bond in liabilities spread the basis we in rate. $XXX market XXX overall In $XXX again bond, weighted of basis our XXXX. This no treasury strong and points to maturities continue a we funding October,

since XX% XXXX. CLO through middle Additionally, including in credit inaugural senior spread issued of CLO XXX-plus $XXX loan at XXX at BXSL's portion notes any priced private SOFR XXX, November the among million pricing plus plus the the value, to tightest most market SOFR senior notes on

To X.XX adding liquidity XX quarter near from up the as billion of undrawn total slightly while was X.X turns X.XX conclude, our in we the midpoint continue to debt increasing at of to to leverage capacity X balance end cash to activity in target turns December We support rebound. believe and of with M&A available our quarter, $X.X was end third borrow, volumes sheet should range through turns. of significant have the positioned year

I'll that, for questions. it up the you. to with open And ask operator Thank

Operator

from We'll with Point. first Instructions] question Casey take our Alexander [Operator Compass

Casey Alexander

curious, I'm platforms just picked I is hasn't quarter what activity new really been hearing from kind deal up of such originations. strong yet. mean, a And that other for the we've

compared the how that as originations. door? Blackstone of came in So in is out sort billion I'm what of new is out that or curious or of Kind universe you new of sort of to ecosystem incumbent merchandise kind $X.X of percentage the of the existing would characterize born

Brad Marshall

Thanks, Casey. Good question.

market team and can the would approach you of go the up play balance which we billion, approach of role we they during And because we a think asked slow originate our show ability glad the where the go those create superpower $X $XXX $X when I because standpoint. a they our and during go the market really idea, They question it. can find banker we provide M&A flow is with one, I billion, having the is deal had deals this sheet. new what from with billion, kind million, I'm and when And to is periods say, $X market company, is sponsor. So the doesn't the -- create if

approached your quarter were question, deal power where in of something had noticed to you we services. But answer a it originate and the is be in the this power fell in alleys, our health deals kind in situation can life where So Typically, proactively. and slower tech where over incumbency, software, which our in where and half company be does where periods. advantage fourth we care market and scale the that into a of platform the team and business science true can some showcase category a will the in

off will new to I start from of start say the just standpoint. we've is slowest the a the XXXX, since M&A year seen that

find is we of aware a pretty and So lot of you'll that probably to opportunities quarter kind we where next can. managers of continue from hear slow, be deployment that and

Operator

Melissa Wedel with We'll JPMorgan. take from our next question

Melissa Wedel

the usually level of Given high activity...

Brad Marshall

then you go be we'll on Melissa, to come may mute. maybe Operator, back just to the next question, Melissa.

Operator

RBC to We'll go Markets. Lee with next Kenneth Capital

Kenneth Lee

the middle think one Just companies towards -- -- core And having there's portfolio rest the prepared the EBITDA of a lower to than on remarks, also average think more about you alluded discussion the investments I having portfolio. looking markets. I the new in the

the Just opportunities? Blackstone more credit such broadly platform market of to you core lean curious that's bit us could of capabilities forward, whether you see middle just available a towards the going pursue could segment little And if so, of there? remind a the

Teddy Desloge

to happy I'm that. Kenneth. Thanks, take Yes,

of So the just some starting facts. on

our for the is was And about So quarter $XXX new benefit origination effort. EBITDA our you're I million. enormous in think the deals funded seeing of what really median

have over We IG our professionals investment sub business. in XXX

We million have on of from that financed EBITDA high portfolio billion the $XX $X the to companies quarter, in end. we ranging

full So market we're the seeing landscape. really

we little middle back, better core syndicated think value market bit in that relative the come have has I as seen a market.

that better. We quarter the and able spreads been where take there, last have advantage were bit presence a significant little to we've of in

Kenneth Lee

may. one just I follow-up, you. quick Got And then if

a bit what little forward? outlook terms Just and you color any spreads, see of a stabilization investment you're if across wanted little whether you're seeing there more going of to kind new seeing in more provide bit could

Brad Marshall

Yes. I'll and start backfill. Teddy Maybe can

tightening over clearly income. spreads So by of driven all down, the just course last spread the came year market fixed broader across

their modest As then is really asset light. leveraged supply basis the spreads points you outlook liabilities rates tighter combination that loan a the and XXX Default and still big market investor, and And quite we public know, in over little are actually loan and by we're positive. from a saw is bit with tightened CLOs AAA demand peak. drove

board, tightening spared that. across spread credit the private wasn't from So

the would more I'll came is in question, answer say your the I that the and than good actually assets. news, probably good liabilities news

from interest actually assets So steady fourth fourth quarter between and the net the pretty the liabilities, of and XXXX of XXXX. quarter

That which lower points. lot So capital that's than -- was then of interesting. is about of shy just XXX obviously, our others, basis helps. cost a XXX And

would could in they near, still see a to they I think of be I think term, widen. pickup going quarter. pretty medium spreads M&A that end the But expect starting And stable here chance in with we're second the actually term, tighten. the to from the near towards activity meaningful I a in

we're little because policy think through now, expected pushed actively to changes, of a is of in activity. lot some coming, a the come, uncertainty very I a there's around But the and going I lull bit right out balance and market it of M&A year. of it's and the that's think, tariffs

Teddy Desloge

thing is only if would mention at The $X.X billion. look there we our you investment I funded Yes. activity,

point was XXX deals average OID. spread on weighted plus Our with funded a SOFR upfront

spread on the XXX So that implied SOFR context. margin in that discount is X-year

variance, wider to XXX look sort were the in but deals of the you at a really there couple the quality of XXXs, on highest If XXX range. variance the for the is up

Operator

Sean-Paul next Raymond We'll James. go Adams with to

Sean-Paul Adams

track Obviously, you record. stellar guys credit have a

while software, been any an to by to portfolio review potential tariff portfolio BXSL's or broader tariff in there is overweight the examine exposure upcoming portfolio unaffected impacts industry defensive has with However, largely impacts? being

Teddy Desloge

Teddy. on of We've is to done Sean. work Yes. Thanks, happy This this. a that. I'm take ton

volumes not higher both target, pressure step Mexico, as take pin back, portfolio. into the from continue into not of a COGS physical at view from and significant U.S., input China of be to Very right? goods part areas down. overall, looked the in be we hard and tariffs I think a regions, where to exporting costs a under particular, moving our We is our U.S., and But could Canada. key

to Overall, I what type think digits to sort the to if impacts it, we hard of put were be. what indicate very kind mid-single -- exposure, of but to numbers would it's handicap

already goods focused like still even up new instance, in in something on on. we're today. we So where watching, were cautious regularly It very consumer I for exposure, certainly investment committees think we're more assets, comes industries deemphasizing

Operator

O'Shea to go [Operator Instructions] with Wells We'll Securities. Finian Fargo next

Finian O'Shea

it's mark to of mid-XXs, but wanted I ask feel that extent to inching about the get a sort what if trajectory that like able of Medallia play something the on if on that XX% performance. to should like to continue to and performance. often you're just out down we'll a trailing provide we means of expect And what under -- color to trying XX% implies, EBITDA sort hear

If that give would could color that you great. on handle, be

Brad Marshall

Thanks, of lot with a private what Fin. you we unfortunately companies, but bit because assets given insight. clearly don't sensitivity happened little Yes, on understand Pluralsight. they're I'll investors for give We a specific the comment just

with a structure grow would bit the EBITDA slower around investment, company So what made actually like. say to into your little its would been Medallia we since capital I growing. we XX% just comment, it's is than tripled but has the

again, is little the that -- the our did grown high which it's EBITDA reflects pressure, meaningfully has bit still since pricing just kind But So challenge. quality. of seeing slowing the deal. growth. product a -- We're that expected is mark the we But of very

of the company up like to a this brought really in and it One, is the in a and of our highlights when deals it situation things. them. with it's being couple we lead this control is important what why and glad because say dialogue -- will I'm control you I deal sponsor

nearly Focusing know, our other is protection. their the stripping paramount issues of for think in have asset on situations XXX% us, doc had that where you XXX% docs. gotten have may as deals I have quality of some or trouble with

for exact are these So these lot a that time things on we reasons. spend of

our a then growth. company other superpower And more some Blackstone's And with said hopefully their can we figuring are as active to had role I to continues the able how maybe companies. cross-sell superpower, again, this but this, ecosystem, we're to we accelerate value which the with Medallia, play as is products drive lastly, out before, and across a

threw lot I So a there. out

kind nicely. our is I below reflects think is plan, a of mark growing but growth the of bit EBITDA little the

Finian O'Shea

Super I just that. on I a revisit just prior wanted helpful. guess Really follow-up. -- the appreciate to small question I headwinds. spread-related

quarters said just Xs, to that understanding in X XXX? this X Ken, that spreads range, average. X, consistent this or indicate today? you Is more toward like did quarter, Xs quarter to ago paper you're the doing low end I was sort looks just you quarter's committed should of skew Or were that originated. what That spreads verify, that, of with low new think the the the

Brad Marshall

go-forward range you're think a in I asking historical basis, or last with I think on spreads are quarter.

I though, think to about Fin, answer a it's -- no talks your always hard everyone spreads because to risk. one question always answer, asks question, ever and about

just we think the that XXX, was less I XXX. that Dropbox than loan-to-value. is to on close spread XX% And example, For did

put So this. got on you spreads, the right emplore really to in context focus everyone of risk to

market super The efficient. is

can capital little facilities moment, in can tighter. it's a drive are spreads it's So and credit bit stability the cost of model that of as market a fees, maintain the where NAV relates their issues, leverage minimize I their think those across winners down to kind it the fronts, whether those are the BDC in that whether all

think So focus on we I talk about to really spreads. it's important when risk

Finian O'Shea

out these non-traded. could day. They're attractive be sort money stuff lot coming and, guess, under-levered. way all in the BDC, direct of still a And Like being I market. maybe the like the other there's but non-traded there's institutional, in. fee washed every public certainly it gets formats, are premium, the there lower industry-wide, Just, there on lot a lot a of out a say, of BDCs very raised Like a a and raising in non-traded lending more follow-up lot this

down can be sort and new goes SOFR sort the the view we of before of that? on any breaks if long or crystal maybe how of What's sort money, the XXX floor feel dam ball there, have XXX when you it or of to your get

Brad Marshall

don't in real in is probably is market I $XX will I market. a trillion. ball. trillion the $X leveraged about is have crystal the The economy probably something say, credit trillion. U.S. close a finance $X Fin, Private to

So the space. white is space enormous, has more why for which capital there's credit is are raised is reason the private been why which investors that being for strong, The there's performance it. attracted to

is have where spread don't then ball the a I I to tighten went guess markets. with thing line markets in plus for will So crystal SOFR is investors. which public one That do not attractive markets the on private has spreads be changed. public spreads spread yes, the for I see if public But to go. certain, could to continue a environment, the in XXX credit you think

because that can is asking thing other for market question the you're efficient. the comment of is the assets of cost is in for And previous BXSL of higher-quality lot I other so getting BDCs risk as becomes done important really not and we've reach think we a one intentionally BDCs is my more lowest into the on The focus market. kind the

and investors, what's So want on you need a returns in that of going. public I context the consistent higher you want good spreads NAV very do stability I than and in our you I available said for basis. to earlier, don't are credit know markets, dividend performance, you deliver a what driving where that do to the need it's know

Operator

Maxwell to next go We'll with Truist Securities. Fritscher

Maxwell Fritscher

On for Mark Hughes.

just the of question, raised. You in hit kind on the last capital new being

that off of stable? can competition lenders? going you on upper BSL's market, in been recently? end there other direct or Or changes the that maybe Has been whether the comment seeing any that, you're So be has relatively

Brad Marshall

on a for this JPMorgan. get definitely come have Melissa But That would say roaring back the her from might back when year. we I markets public the call be question

the not have quite new have bit is think and as tightened of supply comments with the at outlook in the positive back I demand a around spreads U.S., my such of a followed. to cost lot and liabilities asset imbalance the opening deals little

more deals, call been as the for of have immediate positive our get And investors a few because those in little I OID protection result loans syndicated active bit which underwrite broadly a banks some of repayments and markets. a is, they they repayments. the the for So that's larger as guess, the of accelerated an resulting

But definitely activity points, the Teddy's is earlier to the kind little of side, bit on public middle of more upper more of a we more which which recently better to the why kind market use we can skewed from use kind can opportunities the we where markets. our use we scale, because value-add saw public we brand, of just there proposals can our to our program differentiate our end

billion million $X funds, about if fund a for than a a fund a $XXX that or coming new billion, billion, lot billion, terms of which $X new credit with really In in managers, you're of not there's you think space. private portfolio committing $X credit $XXX of private usually managers building into the But deal. a size, more $X are million these

end heated little the the -- small So has that more and a market. lower middle gotten competition maybe there in bit

it's premium. of a market pure bit kind so middle had that's this really And more more a of little

bit not but -- some that a a constrained as Europe more to and focuses Europe little supply lot a a well, Constrained this well specialized. a are sectors from as and demand specialized Europe, standpoint. of as and from sector these on continues that spread standpoint have premium

can't gap R&D and where you that example, that -- through science, but largely has debt $XXX been funding can to the equity alternatives. billion get there's for a So life funding markets, the debt markets, public that funded by take is turning now

spaces white certainly returns our to into for differentiated that are help there moving investors. some drive kind So we're of

Operator

We'll from Melissa take JPMorgan. our question with Wedel last

Melissa Wedel

this me? you hear one time. Let's more try Can

Brad Marshall

Yes.

Melissa Wedel

that I the well of that Okay. repayments surprised XQ. pickup were by expect in I strength originations seemed you was curious what a and as was 'XX? in pretty if Great. the like by surprised into bit, I you -- guess the was especially given surprised little activity I if minimal exits. and a

Teddy Desloge

Melissa, to Yes. I'm take is Teddy. that. happy this

we where would with the portfolio X%, we level quite light either a relatively our were right around was bit we saw deals I over were of -- right point, on year. So quarter, Brad's Where sort to half had over of incumbency. the full activity you, actually companies we repayments had think X% some for of of in agree the of existing incumbency closed or last top

wouldn't that drive necessarily So repayments.

our our to back the an quarter a and interest M&A -- in income lever is very is pick. lot of market income, the from income returns, comes do that year, view OID, fee think potential I accelerated low not if XX% right? low upside very of generated as this just We

So as returns. as this picks to potential the repayments we're M&A year, market up, up driver a pick that's upside --

Operator

our or That I to back At session. time, will this question-and-answer the turn call Farshidi like to any over closing additional for Justin would conclude remarks.

Justin Farshidi

Thank joining for you again of We forward next to our reconvene look you, we'll today's follow-up and thanks to call. and discussions, all quarter.

Blackstone Secured Lending Fund (BXSL) 26 Feb 252024 Q4 Earnings call transcript