Blackstone's $83 billion fund posts 1st monthly loss since 2022
Blackstone's $83 billion private credit fund (BCRED) saw a rare slip in February 2026, dropping 0.4%; its first monthly loss since September 2022.
After an 8% gain last year, the fund's returns for this year are now flat.
Loss attributed to credit spreads and Medallia markdown
The loss was mainly due to wider credit spreads and a markdown of Medallia.
Even so, BCRED has outperformed leveraged loans by 0.4% points in February 2026 and has outperformed leveraged loans by 360 basis points since launching in January 2021.
Its annualized return is still a solid 9.5%, with payouts at nearly 10%.
Record redemption requests this quarter
Redemption requests hit a record high this quarter: almost $3.7 billion worth of shares wanted out (about 8% of assets).
To handle it, Blackstone raised withdrawal limits and put in $400 million of its own cash, plus support from more than two dozen top executives, to make sure everyone got paid.
The fund still had $8 billion in liquidity at the end of last year.