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BDEBT

BlackRock Private Credit Fund

Access private credit with BlackRock's Institutional Credit team.
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Title: What makes direct lending so “direct”?
Proposed social copy: Why are investors increasingly turning to private credit? Jim Keenan, our
Chief Investment Officer and Global Head of Private Debt, explains on the latest episode of
#BLKBottomLine.
Script:
What makes direct lending so direct? Direct loans are predominantly privately negotiated – directly
between a lender and borrower without an intermediary like a bank.
Direct loans are typically offered to middle market companies. In the US this includes over 200,000
companies with enterprise values between $10M and $1B.1
- Source: Middle Market Indicator Mid-Year 2023 Report
These loans are often structured with more favorable terms to the lender, often leading to better
recovery rates compared to public market loans. And given the typically floating-rate coupons,
investors can benefit from higher rate environments, like today.
Borrowers are also increasingly turning to private credit markets for three major reasons:
1. Constrained capital – a pullback in bank lending and barriers to enter public markets has led
companies to seek liquidity in the private markets
2. Execution certainty – borrowers prefer the less resource-intensive process of the private
markets
3. Partner preference –Borrowers benefit from having a direct relationship with a more
concentrated lender base.
The bottom line is middle market companies in the US are turning to private debt for their financing
needs, which is increasing both the size of the market and the number of investment opportunities.
Source (in supporting materials in RO:
1 Middle Market Indicator Mid-Year 2023 Report, page 2
(https://www.middlemarketcenter.org/middle-market-indicator-overview)
o The Middle Market Indicator (MMI) from the National Center for the Middle Market is
a semi-annual business performance update and economic outlook survey conducted
among 1,000 C-suite executives of companies with annual revenues between $10MM
and $1B. There are nearly 200,000 U.S. middle market businesses that represent one third of private sector GDP, employing approximately 44.5 million people.
Disclosures
This material is intended for information purposes only, and does not constitute investment
advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or
strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale
would be unlawful under the securities laws of such jurisdiction. The opinions expressed are as
of September 2023 and are subject to change without notice. Reliance upon information in this
material is at the sole discretion of the reader. Investing involves risks.
In the U.S., this material is intended for public distribution.
© 2023 BlackRock, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock,
Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of
their respective owners.

MKTGSH1023U/S-3137190-2/2

BlackRock Private Credit Fund (BDEBT)

BDEBT is a non-traded business development company seeking to target attractive risk-adjusted returns produced primarily from current income generated by investing primarily in directly-originated, senior-secured corporate debt investments.

Hear from Jim Keenan, Chief Investment Officer of Private Debt, about what makes direct lending so direct.

7.37%
2024 YTD total return1
11.13%
Distribution rate2
99.9%
First-lien3
$795
Million in total assets4

Why BDEBT?

Icon income
Access private credit
Seeks returns primarily generated by current income from private credit investments and targets monthly distributions.5
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Easy to implement
Provides 1099 tax reporting, low investment minimums, and monthly subscriptions in an SEC-regulated vehicle.6
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BlackRock Edge
Access our differentiated deal sourcing, underwriting, and management capabilities backed by BlackRock’s $84.8B private debt business.7

It's time to move beyond traditional credit markets

We believe banks retreating from credit markets has created opportunity in private markets and direct lending.8
Credit markets

Private credit may offer potential structural protections

Direct lending offers potential investor protections through privately negotiated terms, covenants, and pricing. BDEBT focuses on senior-secured loans, which sit at the top of the capital structure, and are the first to be repaid in the event of default.
Structural protections

Say hello to your dedicated and experienced team

Our seasoned senior team has ~29 years of industry experience and ~18 years of working together. * We seek to identify unique opportunities and apply creative structuring for potentially better investment outcomes.

Phil Tseng
Lead Portfolio Manager, Co-Head of Direct Lending
Raj Vig
Managing Director, BlackRock Global Credit
Patrick Wolfe
Senior Portfolio Manager, COO
Jason Mehring
Senior Portfolio Manager

Our approach to private credit

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Deep industry knowledge
Our investment teams are aligned across 19 industry verticals. Industry specialization may help with deal sourcing and underwriting, as well as our focus on risk management.
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Expertise with complex credits
Creative and flexible deal structuring may allow us to use deal complexity to our advantage, while also seeking to mitigate risk.
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Multi-channel sourcing
Seeks broad, multi-channel sourcing and an attractive deal selection rate, regardless of market conditions.

* Source: BlackRock as of September 2024

BDEBT

BlackRock Private Credit Fund Performance

Performance

7.37%
2024 YTD total return1
11.13%
Distribution rate2
$24.79
NAV per share9

BlackRock as of 08/31/2024. YTD total return represents Institutional Class Shares.

Historical performance & data

Access BDEBT'S historical performance, distribution per share, and NAV performance.
historical performance for bdebt august 2024

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares may be worth more or less than the original cost. All returns show reinvestment of dividends and capital gains. Current performance may be lower or higher than the performance quoted. For complete accounting as of the most recent quarter-end please refer to the 10-Q on the "Resources and Contacts" tab.

Past performance is not necessarily indicative of future results. Total Net Return is calculated as the change in NAV per share during the period, plus distributions per share (assuming dividends and distributions are reinvested) divided by the beginning NAV per share. Returns greater than one year are annualized. All returns shown are derived from unaudited financial information and are net of all BDEBT expenses, including general and administrative expenses, transaction related expenses, management fees, incentive fees, and share class specific fees, but exclude the impact of early repurchase deductions on the repurchase of shares that have been outstanding for less than one year. Class Institutional does not have upfront placement fees. The returns have been prepared using unaudited data and valuations of the underlying investments in BDEBT’s portfolio, which are estimates of fair value and form the basis for BDEBT’s NAV. Valuations based upon unaudited reports from the underlying investments may be subject to later adjustments, may not correspond to realized value and may not accurately reflect the price at which assets could be liquidated.

BlackRock's distinctive private credit experience

BlackRock's global credit platform has large, centralized teams focused on sourcing high quality private credit opportunities across all market cycles. As a leader in private credit investing with 24+ years of expertise, we seek to identify value in unique and complex transactions where others cannot.

Increase24
years lending to middle market companies
$41
billion invested across 1,025 transactions12
698
deals reviewed from multi-channel sources13
6%
investment selection rate in the last 12 months13
BDEBT

BlackRock Private Credit Fund Portfolio Snapshot

Portfolio positioning14

bdebt portfolio positioning chart august 2024

14BlackRock as of August 31, 2024. Subject to change.

Measured as the fair value of investments for each category against the tool fair value of all investments. Totals may not sum due to rounding.

BDEBT portfolio snapshot

Explore BDEBT's recent fund performance, top holdings and learn the facts on BlackRock's history in private credit management. Gain insights on up-to-date portfolio trends with BDEBT and more.
key facts bdebt

What is a Business Development Company?

Unlisted business development companies (BDCs) are SEC-regulated vehicles that seek to offer access to private investments in an efficient fund structure. BDCs were created to provide enhanced access to capital for small and medium-sized companies in the U.S. and provide a wide range of investors the opportunity to invest in potentially high growth private companies.

Fund features

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Private credit exposure15
Targets a portfolio almost entirely invested in senior-secured private credit opportunities, providing investors with meaningful exposure.
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Seeks regular distributions16
Expects to target monthly distributions. BDCs distribute 90% of income annually.
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Target quarterly liquidity17
Anticipates quarterly liquidity, subject to board approval.

15 The Fund may invest up to 100% of its assets in securities acquired directly from issuers in privately negotiated transactions subject to an initial ramp up period.

16 The Fund expects to pay regular monthly distributions, which are expected to commence in the third quarter of 2022. Any distributions we make will be at the discretion of our Board of Trustees, considering factors such as our earnings, cash flow, capital needs and general financial condition and the requirements of Delaware law. As a result, our distribution rates and payment frequency may vary from time to time. Distribution payments are not guaranteed, and BlackRock Private Credit Fund may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements, and has no limits on such amounts it may pay from such sources.

Distribution payments are not guaranteed, and BlackRock Private Credit Fund may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements, and has no limits on such amounts it may pay from such sources.

17 The Fund commenced operations on 06/01/22. It is expected that, beginning in the second quarter of 2023, the Fund will offer to repurchase Shares (through written tender offers) on a quarterly basis of up to 5% of the shares outstanding, subject to a portfolio liquidity threshold and at the discretion of the Board. However, there can be no assurance that the Fund will repurchase shares on a quarterly basis or at all. Further, if the Fund repurchases shares, there is no guarantee that shareholders will be able to sell all of the Shares that they desire to sell in any particular quarter. Shares of the Fund are still considered illiquid and appropriate only for those investors who do not require a liquid investment and who are aware of the risks involved in investing in the Fund.

Shares of the Fund are still considered illiquid and appropriate only for those investors who do not require a liquid investment and who are aware of the risks involved in investing in the Fund.

BDEBT

BlackRock Private Credit Fund Resources

Advisors. The most successful ones know that to deliver the very best for their clients, they need to stay one step ahead. Or several.

They have to be agile… but consistent… while evolving to meet client demand today, and championing investment and business solutions that will attract the clients of tomorrow.

So you probably already know all about the opportunities and risks surrounding stocks and bonds…and feel that finding consistent returns and potential real yield is tougher than ever.

Volatility, inflation, geopolitical risk - all of it is putting the traditional 60/40 portfolio under pressure.

Which means advisors need to allocate differently to continue delivering for clients.

But what about private markets?

Over the last 30 years, private markets have become more and more essential to pay attention to.

As the number of publicly listed U.S. companies has shrunk, the number of private companies grew. A lot.

Private markets, like private equity and private credit, can help investors pursue higher returns and income over public stocks and bonds.

But …. many investors have been shut out of accessing private investments due to high minimums, suitability requirements, and high fees, but now, that’s changed.

Now… for accredited investors that can tolerate the risk…private markets are easier to access than ever before.

1099 tax reporting, low minimums, quarterly liquidity - these are just some of the features open to investors through accredited investment vehicles.

And best of all, with BlackRock you have a dedicated partner to navigate the world of private markets with.

Together we can help you build better portfolios and become an even more successful future-thinking advisor for your clients.

Find out more by signing into Advisor Center on BlackRock.com.

Private markets unleashed

See why investors may want to consider private markets for investment opportunities outside of stocks and bonds.