Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the strong quarter for new originations despite other platforms reporting slow deal activity? A: Brad Marshall, Co-Chief Executive Officer, explained that Blackstone's ability to originate deals during slow market periods is a key strength. Over half of their deals in the fourth quarter were proactively sourced by their team, leveraging their scale to create deal flow even when the market is slow.
Q: Are you seeing a shift towards more core middle market investments, and what capabilities does Blackstone have in this area? A: Teddy Desloge, Chief Financial Officer, noted that the median EBITDA for new deals was $138 million, reflecting their broad market reach. They have significant presence in the core middle market and have been able to capitalize on better relative value in this segment.
Q: What is the outlook for new investment spreads, and are you seeing stabilization? A: Brad Marshall indicated that spreads have tightened across the board, but liabilities have also come in, keeping net interest margins steady. He expects spreads to remain stable with potential tightening in the near term and widening in the medium term as M&A activity picks up.
Q: Has there been any review of BXSL's portfolio exposure to potential tariff impacts? A: Teddy Desloge stated that they have conducted extensive reviews and found mid-single-digit exposure to tariff impacts. They are cautious about industries like consumer goods, where they have already reduced exposure.
Q: Can you comment on the competition in the upper end of the market and any recent changes? A: Brad Marshall noted that the public markets have become more active, leading to some repayments of larger deals. However, Blackstone's scale and brand allow them to differentiate their offerings, particularly in the upper middle market where they see better opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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