economy
March 3, 2026
Blackstone’s Gray: Market ‘noise’ fueled record redemptions from world’s largest private credit fund
Blackstone president Jon Gray defended the quality of loans within the firm's flagship private credit fund.
TL;DR
- Blackstone president Jon Gray defended the loan quality in its BCRED private credit fund following nearly 8% investor withdrawals.
- Gray stated that the fund's 400-plus borrowers experienced 10% EBITDA growth last year.
- He attributed investor nervousness and redemptions to market 'noise' and a negative news cycle, referencing past firm collapses.
- Loans to software firms represent the largest exposure in BCRED at roughly 25%, with Gray acknowledging potential AI disruption but highlighting lender seniority.
- Blackstone facilitated withdrawals by allowing its own investors to put $150 million into the fund, meeting 100% of requests.
- The fund has delivered 9.8% annualized returns since inception for Class I shares.
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