Blackstone closes first series U.S. direct lending fund with $22 billion

Banking & Financial Services
Webp 0eghnyrawlg53ga2dv5x7elo939v
Stephen A. Schwarzman Chairman, CEO & Co-Founder | Blackstone Group Inc.

Blackstone has announced the final closure of the first series of its U.S. direct lending fund, Blackstone Senior Direct Lending Fund (BXD), amassing $22 billion in investable capital. This amount surpasses their initial target of $10 billion and elevates Blackstone's global direct lending platform to over $123 billion in assets under management as of the third quarter.

"This capital raise reflects our long-term strength in private credit, our global reach across corporates and sponsor-led transactions, and our ability to add value to the companies with which we partner," stated Brad Marshall, Global Head of Private Credit Strategies at Blackstone Credit & Insurance (BXCI). He added that their scale positions them well for an anticipated active transaction environment with declining rates.

In the third quarter alone, BXCI deployed or committed $40 billion in direct lending, more than double their total for all of 2023. This includes major deals such as CoreWeave ($7.5B), Squarespace ($2.7B), Fidelis ($2B), and Davies (£1.5B). Additionally, they participated in middle-market transactions like Permira’s Acuity Knowledge Partners ($600M) and Graham Partners’ Gatekeeper Systems ($550M).

Gilles Dellaert, Global Head of BXCI, emphasized their platform's strength in both traditional middle-market and larger deals available to few others. "Investors and borrowers continue to recognize the benefits that private capital can provide in direct lending and across the broader credit markets," he said.

Blackstone Credit & Insurance is recognized as a leading credit investor globally, offering investments across various markets such as private investment grade and asset-based lending. Their aim is to generate attractive risk-adjusted returns for institutional and individual investors by providing companies with necessary growth capital.