Keefe Bruyette Cuts PT on Blackstone Secured Lending Fund (BXSL), Maintains Outperform

Blackstone Secured Lending Fund (NYSE:BXSL) is included among the 10 Best BDC Stocks to Buy Right Now.

On April 16, Keefe Bruyette lowered its price recommendation on Blackstone Secured Lending Fund to $26 from $27. It reiterated an Outperform rating on the stock.

During the Q4 2025 earnings call, Brad Marshall, Trustee, Chairman, and Co-CEO, said the company delivered another solid quarter. He noted that net investment income was $0.80 per share, equal to an 11.8% annualized return on equity. Most of that income came from interest, with only a small portion from PIK or dividends. He also said the company paid a distribution of $0.77 per share. That payout was fully covered by earnings, with coverage at 104% of net investment income per share. In his view, this represented an 11.4% annualized yield based on NAV.

Regarding investments, he noted that activity increased during the quarter. He described Q4 as the firm’s second-most-active funding period since 2021. The portfolio expanded to 316 companies, including 13 new credit investments. These were completed at an average loan-to-value of 41% and spreads of roughly 500 basis points.

He also mentioned several key transactions, including investments in AmTrust, Mankind, IEM, and Saber Power, along with a co-led deal involving Jefferson, a digital aviation solutions company.

Blackstone Secured Lending Fund is an externally managed, non-diversified, closed-end investment company. Its main goal is to generate current income, with some focus on long-term capital appreciation. The firm invests at least 80% of its assets in secured debt.

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