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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 Offer of Private Debt, about what makes direct lending so direct.

17.01%
Year-to-date total return1
11.11%
Distribution rate2
100%
First-lien %3
$428
Total assets (mm) *

Why BDEBT?

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Access private credit
Seeks returns primarily generated by current income from private credit investments and targets monthly distributions.4
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Easy to implement
Provides 1099 tax reporting, low investment minimums, and monthly subscriptions in an SEC-regulated vehicle.5
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BlackRock Edge
Access our differentiated deal sourcing, underwriting, and management capabilities backed by BlackRock’s $81B private debt business.6

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.7
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 ~28 years of industry experience and ~17 years of working together. * We seek to identify unique opportunities and apply creative structuring for potentially better investment outcomes.

Phil Tseng
Managing Director, BlackRock Global Credit
Raj Vig
Managing Director, BlackRock Global Credit
Patrick Wolfe
Managing Director, BlackRock Global Credit

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 9/30/2022

BDEBT

BlackRock Private Credit Fund Performance

Performance

17.01%
Year-to-date total return1
11.11%
Distribution rate2
$24.85
NAV8

BlackRock as of 12/31/2023

Historical performance & data

Access BDEBT'S historical performance, distribution per share, and NAV performance.
Historical performance

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 a 23+ year track record, we seek to identify value in unique and complex transactions where others cannot.

Increase23
years lending to middle market companies
$38
billion invested across 1,027 transactions9
854
deals reviewed from multi-channel sources10
4%
investment selection rate for 202210
BDEBT

BlackRock Private Credit Fund Portfolio Snapshot

Portfolio positioning11

Portfolio snapshot

BlackRock as of December 31, 2023. 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 exposure12
Targets a portfolio almost entirely invested in senior-secured private credit opportunities, providing investors with meaningful exposure.
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Seeks regular distributions13
Expects to target monthly distributions. BDCs distribute 90% of income annually.
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Target quarterly liquidity14
Anticipates quarterly liquidity, subject to board approval.

12 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.

13 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.

14 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

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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.

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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.