Blackstone Secured Lending FundBXSL
Blackstone Secured Lending Fund Fair Value Disclosure
Fair Value Measurements
The following tables present the fair value hierarchy of financial instruments:
| December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| First lien debt | $ | — | $ | 106,617 | $ | 13,759,817 | $ | 13,866,434 | |||||||||||||||
| Second lien debt | — | — | 231,650 | 231,650 | |||||||||||||||||||
| Unsecured debt | — | — | 12,278 | 12,278 | |||||||||||||||||||
| Equity | 438 | — | 96,494 | 96,932 | |||||||||||||||||||
| Total | $ | 438 | $ | 106,617 | $ | 14,100,239 | $ | 14,207,294 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| First lien debt | $ | — | $ | 115,753 | $ | 12,714,636 | $ | 12,830,389 | |||||||||||||||
| Second lien debt | — | — | 119,184 | 119,184 | |||||||||||||||||||
| Unsecured debt | — | — | 33,521 | 33,521 | |||||||||||||||||||
| Equity | — | — | 109,424 | 109,424 | |||||||||||||||||||
| Total | $ | — | $ | 115,753 | $ | 12,976,765 | $ | 13,092,518 | |||||||||||||||
Within Investments at fair value, substantially all Equity investments are illiquid and privately negotiated in nature and are subject to contractual sale constraints or other restrictions pursuant to their respective governing or similar agreements. Approximately $5.8 million of such Equity investments have a sale constraint or other restriction that will lapse after a predetermined date; the weighted average remaining duration of such restrictions is 4.2 years.
The following tables present changes in the fair value of financial instruments for which Level 3 inputs were used to determine the fair value:
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| First Lien Debt | Second Lien Debt | Unsecured Debt | Equity | Total | |||||||||||||||||||||||||
| Fair value, beginning of period | $ | 12,714,636 | $ | 119,184 | $ | 33,521 | $ | 109,424 | $ | 12,976,765 | |||||||||||||||||||
| Purchases of investments | 3,252,217 | 112,881 | 1,877 | 3,416 | 3,370,391 | ||||||||||||||||||||||||
| Proceeds from principal repayments and sales of investments | (2,183,549) | (3,462) | (22,548) | (12,455) | (2,222,014) | ||||||||||||||||||||||||
| Accretion of discount (amortization of premium) | 51,373 | 395 | 76 | — | 51,844 | ||||||||||||||||||||||||
| Net realized gain (loss) | (7,923) | — | — | 7,522 | (401) | ||||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) | (73,904) | 2,652 | (648) | (11,413) | (83,313) | ||||||||||||||||||||||||
Transfers into Level 3 (1) | 6,967 | — | — | — | 6,967 | ||||||||||||||||||||||||
Transfers out of Level 3 (1) | — | — | — | — | — | ||||||||||||||||||||||||
| Fair value, end of period | $ | 13,759,817 | $ | 231,650 | $ | 12,278 | $ | 96,494 | $ | 14,100,239 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of December 31, 2025 included in net change in unrealized appreciation (depreciation) on the Consolidated Statements of Operations | $ | (74,544) | $ | 2,166 | $ | (889) | $ | (6,367) | $ | (79,634) | |||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| First Lien Debt | Second Lien Debt | Unsecured Debt | Equity | Total | |||||||||||||||||||||||||
| Fair value, beginning of period | $ | 9,564,203 | $ | 41,515 | $ | 9,924 | $ | 94,940 | $ | 9,710,582 | |||||||||||||||||||
| Purchases of investments | 3,911,214 | 79,441 | 23,669 | 14,129 | 4,028,453 | ||||||||||||||||||||||||
| Proceeds from principal repayments and sales of investments | (789,651) | (271) | — | (492) | (790,414) | ||||||||||||||||||||||||
| Accretion of discount (amortization of premium) | 38,337 | 116 | 45 | — | 38,498 | ||||||||||||||||||||||||
| Net realized gain (loss) | (19,498) | — | — | 492 | (19,006) | ||||||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) | (34,427) | (1,617) | (117) | 355 | (35,806) | ||||||||||||||||||||||||
Transfers into Level 3 (1) | 45,260 | — | — | — | 45,260 | ||||||||||||||||||||||||
Transfers out of Level 3 (1) | (802) | — | — | — | (802) | ||||||||||||||||||||||||
| Fair value, end of period | $ | 12,714,636 | $ | 119,184 | $ | 33,521 | $ | 109,424 | $ | 12,976,765 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) included in earnings related to financial instruments still held as of December 31, 2024 included in net change in unrealized appreciation (depreciation) on the Consolidated Statements of Operations | $ | (33,283) | $ | (1,619) | $ | (118) | $ | 356 | $ | (34,664) | |||||||||||||||||||
(1)For the years ended December 31, 2025 and 2024, transfers into or out of Level 3 were primarily due to decreased or increased price transparency.
The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 financial instruments. These tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Company’s determination of fair value.
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Range | |||||||||||||||||||||||||||||||||||
| Fair Value | Valuation Technique | Unobservable Input | Low | High | Weighted Average (1) | ||||||||||||||||||||||||||||||
| Investments in first lien debt | $ | 13,198,498 | Yield Analysis | Discount Rate | 6.94 | % | 19.36 | % | 9.44 | % | |||||||||||||||||||||||||
| 462,825 | Asset Recoverability | Market Multiple | 7.25x | 12.47x | 11.23x | ||||||||||||||||||||||||||||||
| 98,494 | Market Quotations | Broker quoted price | 97.25 | 100.00 | 99.97 | ||||||||||||||||||||||||||||||
| 13,759,817 | |||||||||||||||||||||||||||||||||||
| Investments in second lien debt | 231,650 | Yield Analysis | Discount Rate | 8.45 | % | 15.78 | % | 10.11 | % | ||||||||||||||||||||||||||
| Investments in unsecured debt | 12,278 | Yield Analysis | Discount Rate | 15.10 | % | 15.10 | % | 15.10 | % | ||||||||||||||||||||||||||
| Investments in equity | 62,579 | Market Approach | Performance Multiple | 6.40x | 33.63x | 12.28x | |||||||||||||||||||||||||||||
| 19,678 | Yield Analysis | Discount Rate | 12.50 | % | 19.50 | % | 15.08 | % | |||||||||||||||||||||||||||
| 11,235 | Option Pricing Model | Expected Volatility | 32.00 | % | 70.50 | % | 33.34 | % | |||||||||||||||||||||||||||
| 3,002 | Asset Recoverability | Market Multiple | 8.50x | 16.00x | 11.22x | ||||||||||||||||||||||||||||||
| 96,494 | |||||||||||||||||||||||||||||||||||
| Total | $ | 14,100,239 | |||||||||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Range | |||||||||||||||||||||||||||||||||||
| Fair Value | Valuation Technique | Unobservable Input | Low | High | Weighted Average (1) | ||||||||||||||||||||||||||||||
| Investments in first lien debt | $ | 12,546,382 | Yield Analysis | Discount Rate | 7.00 | % | 22.67 | % | 10.15 | % | |||||||||||||||||||||||||
| 102,316 | Market Quotations | Broker Quoted Price | 97.00 | 100.57 | 100.08 | ||||||||||||||||||||||||||||||
| 63,879 | Asset Recoverability | Market Multiple | 10.00x | 10.75x | 10.40x | ||||||||||||||||||||||||||||||
| 2,059 | Asset Recoverability | Discount Rate | 10.33 | % | 10.92 | % | 10.36 | % | |||||||||||||||||||||||||||
| 12,714,636 | |||||||||||||||||||||||||||||||||||
| Investments in second lien debt | 119,184 | Yield Analysis | Discount Rate | 8.86 | % | 16.73 | % | 11.52 | % | ||||||||||||||||||||||||||
| Investments in unsecured debt | 33,521 | Yield Analysis | Discount Rate | 7.71% | 13.94% | 10.12% | |||||||||||||||||||||||||||||
| Investments in equity | 69,633 | Market Approach | Performance Multiple | 2.30x | 30.00x | 10.11x | |||||||||||||||||||||||||||||
| 21,697 | Yield Analysis | Discount Rate | 9.54 | % | 19.47 | % | 15.55 | % | |||||||||||||||||||||||||||
| 14,499 | Option Pricing Model | Expected Volatility | 23.50 | % | 70.50 | % | 34.03 | % | |||||||||||||||||||||||||||
| 3,166 | Asset Recoverability | Market Multiple | 10.00x | 10.75x | 10.50x | ||||||||||||||||||||||||||||||
| 429 | Transaction Price | N/A | |||||||||||||||||||||||||||||||||
| 109,424 | |||||||||||||||||||||||||||||||||||
| Total | $ | 12,976,765 | |||||||||||||||||||||||||||||||||
(1)Weighted averages are calculated based on fair value of investments.
The significant unobservable input used in the yield analysis is the discount rate based on comparable market yields. Significant increases in discount rates would result in a significantly lower fair value measurement. The significant unobservable input used for market quotations are broker quoted prices provided by independent pricing services. The significant unobservable input used under the market approach is the Performance Multiple. The significant unobservable inputs used under the asset recoverability approach are the market multiple and discount rate. Significant decreases in quoted prices, Performance Multiples, or market multiples would result in a significantly lower fair value measurement. The significant input used in the option pricing model is expected volatility. Significant increases or decreases in expected volatility could result in a significantly higher or significantly lower fair market value measurement, respectively.
Financial Instruments Not Carried at Fair Value
Debt
The fair value of the Company’s SPV Financing Facilities (as defined in Note 7) and Revolving Credit Facility (as defined in Note 7), as of December 31, 2025 and December 31, 2024, approximates their carrying value as the credit facilities have variable interest based on selected short-term rates. These financial instruments would be categorized as Level 3 within the fair value hierarchy.
The following table presents the fair value measurements of the Company’s Unsecured Notes and Debt Securitization Notes (as defined in Note 7) had they been accounted for at fair value. These financial instruments would be categorized as Level 3 within the fair value hierarchy as of December 31, 2025 and December 31, 2024.
| December 31, 2025 | December 31, 2024 | ||||||||||
| Fair Value | Fair Value | ||||||||||
| 2026 Notes | $ | 799,357 | $ | 788,880 | |||||||
| New 2026 Notes | 691,950 | 672,420 | |||||||||
| 2027 Notes | 632,710 | 608,725 | |||||||||
| 2028 Notes | 615,550 | 590,200 | |||||||||
| November 2027 Notes | 408,680 | 406,440 | |||||||||
| April 2028 Notes | 706,370 | 698,460 | |||||||||
| June 2030 Notes | 497,550 | — | |||||||||
| January 2031 Notes | 494,000 | — | |||||||||
| 2024-1 Notes | 457,450 | 457,568 | |||||||||
| Total | $ | 5,303,617 | $ | 4,222,693 | |||||||
Other
As of December 31, 2025 and December 31, 2024, the carrying amounts of the Company’s other assets and liabilities approximate fair value. These financial instruments, with the exception of cash and cash equivalents (including money market funds classified within Cash and Cash Equivalents in the Consolidated Statements of Assets and Liabilities) which would be categorized as Level 1, would be categorized as Level 3 within the fair value hierarchy.About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.