Unicus Research (@contrarianunicus): "Blackstone released a document this week titled “Private Credit: Myth vs. Fact.” It argues that concerns about BDCs are overblown, that credit quality is resilient, that the semi-liquid structure works as designed, and that software exposure is well protected. We were skeptical…"

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Blackstone released a document this week titled “Private Credit: Myth vs. Fact.” It argues that concerns about BDCs are overblown, that credit quality is resilient, that the semi-liquid structure works as designed, and that software exposure is well protected.

We were skeptical, so we read it against Fitch, S&P Global Ratings, and Blackstone’s own SEC filings

Here is what we found. On leverage: Blackstone says BDCs are 30x less levered than banks were in 2008. True. Also, besides the point. On transparency: Blackstone says credit stress is visible, not hidden, because loans are marked down as facts change. Fitch's March 2026 stress test document states that quarterly marks are highly subjective, lack observable market prices, and diverge across BDCs during market dislocation. Blackstone says credit stress is visible and not hidden. Those two statements cannot both be true. On credit quality: Blackstone cites BCRED’s 10% EBITDA growth as evidence that the sector is resilient. Blackstone itself says BCRED’s portfolio grows earnings at 2x the private credit market average of 5%. BCRED is the best-performing fund in the most favorable segment of the market. S&P’s February 2026 report, covering the broader universe, tells a different story.

Unicus Research

Apr 10

12:45 AM

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