Blackstone Secured Lending Fund Faces Redemption Surge

Analyst warns of high costs and risks in owning BXSL or other private credit vehicles

Mar. 5, 2026 at 6:59pm

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Blackstone (BX) and its Blackstone Secured Lending Fund (BXSL) are facing active trading this week as Blackstone Private Credit Fund (BCRED) continues to dominate headlines in the private credit space. While BCRED itself does not trade, its redemption activity is impacting the broader private credit market, including BXSL.

Why it matters

The surge in BCRED redemptions highlights the potential risks and high costs associated with investing in private credit vehicles like BXSL. Investors should carefully consider these factors when evaluating their options in the current market environment.

The details

Analyst Dan Plettner, who has a long position in BXSL, warns that the high costs and risks of owning BXSL or any private credit vehicle should be weighed against the potential yields of more traditional 1940 Act Protected Closed-End Fund Preferred shares. Plettner's research focuses on closed-end funds and other lesser-known securities.

  • Blackstone (BX) and Blackstone Secured Lending Fund (BXSL) are trading actively this week.

The players

Dan Plettner

An analyst who focuses his qualitative investigative research methods on Closed-End Funds and other underfollowed securities. Plettner was born in 1975, completed his undergraduate degree Magna Cum Laude from Miami University (Oxford, Ohio), and won the 'NSD award' as a retail Financial Advisor at Morgan Stanley Dean Witter before attaining his MBA from New York University.

Blackstone

An American alternative investment management firm that specializes in private equity, credit, and real estate investments.

Blackstone Secured Lending Fund (BXSL)

A non-traded business development company managed by Blackstone that provides financing solutions to the middle market.

Blackstone Private Credit Fund (BCRED)

A non-traded private credit fund managed by Blackstone that is not publicly traded but has been generating headlines due to its redemption activity.

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What they’re saying

“High costs and risks of owning BXSL or any Private Credit vehicle should be tempered against the best yielding 1940 Act Protected CEF Preferred at any time.”

— Dan Plettner, Analyst

The takeaway

Investors should exercise caution when considering investments in private credit vehicles like BXSL, as the high costs and risks may outweigh the potential returns. Plettner's research suggests that more traditional 1940 Act Protected Closed-End Fund Preferred shares may offer better value in the current market environment.