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Blackstone Senior Floating Rate 2027 Term Fund
Blackstone launched this fund in 2022 as part of a wave of shorter-duration credit products designed for yield-focused investors in a rising-rate...
Blackstone Senior Floating Rate 2027 Term Fund
Blackstone launched this fund in 2022 as part of a wave of shorter-duration credit products designed for yield-focused investors in a rising-rate environment. The portfolio managers, Daniel McMullen and Robert Zable, run the vehicle within Blackstone Credit, the firm's roughly $300 billion credit arm (per the firm's public disclosures). Unlike evergreen credit BDCs, the term fund has a fixed maturity date in 2027, which shapes its origination and portfolio construction—every loan must align with that termination timeline. Strategy rests entirely on senior secured floating-rate loans, typically first-lien, issued by non-investment-grade US companies. Holdings span broadly syndicated loans, where Blackstone uses its scale to negotiate terms, and middle-market direct originations sourced through the firm's internal lending platform. The portfolio is diversified by issuer, but concentrated within floating-rate credit—no equity, no fixed-rate bonds, no CLO equity. Blackstone's credit team underwrites each position directly, with the fund often participating alongside other Blackstone-managed vehicles like BCRED or the Blackstone Private Credit Fund. The term fund's size has not been disclosed as a standalone vehicle, though Blackstone Credit's overall platform deployed over $30 billion in the first quarter of 2023 alone (per Blackstone public filings). The fund maintains no permanent office outside New York, but draws on Blackstone's credit origination teams in London, Singapore, and Sydney. In March 2023, Blackstone confirmed that the credit platform had ample dry powder to meet borrower demand amid regional bank stress—a posture that directly affects the term fund's deployment runway. The structural differentiator is the 2027 sunset. Most private credit funds operate as perpetual or near-perpetual vehicles, reinvesting proceeds indefinitely. This fund must liquidate its portfolio and return capital by 2027, creating a natural illiquidity discount in its listed shares absent any activist catalyst. The governance sits under Blackstone's credit division; portfolio decisions remain centralized in New York under the named PMs. No sidecar vehicles or co-investment programs have been publicly linked to this specific term fund, which runs as a pure-play closed-end strategy.
General information
Firm type
Asset Manager
Year founded
2022
AUM
Undisclosed
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Principals
Daniel McMullen
Portfolio Manager
Robert Zable
Portfolio Manager
Sector focus
Frequently asked questions
Who runs investment decisions at Blackstone Senior Floating Rate 2027 Term Fund?
Daniel McMullen and Robert Zable serve as portfolio managers for the term fund, operating within Blackstone Credit. Both have deep backgrounds in leveraged loan investing, with Zable joining Blackstone from GSO Capital Partners, the credit-focused asset manager Blackstone acquired. Investment decisions are made by the portfolio management team under the broader Blackstone Credit risk framework.
How does the fund's 2027 termination date affect portfolio construction?
Every loan the fund buys must align with a 2027 liquidation horizon. This eliminates long-dated direct lending deals, mezzanine debt, and any asset class that could extend beyond the term. The portfolio managers ladder maturities within the floating-rate loan universe, prioritizing liquid broadly syndicated loans that can be sold into the secondary market well before 2027 to maximize return of capital.
Does the fund participate in direct lending alongside private credit BDCs?
Yes, but with constraints. The fund co-invests alongside other Blackstone-managed vehicles, including non-traded BDCs like BCRED, where capacity allows and the loan's maturity fits the 2027 term. However, because BDCs operate as perpetual entities, they can hold loans to maturity; the term fund must sell by 2027, which limits direct origination activity to loans with robust secondary-market liquidity.
What is the fund's posture on co-investments alongside external GPs?
The term fund does not participate in external manager co-investment programs or club deals. All credit deployment sources through Blackstone's own origination platform. The PMs may coordinate with syndicate banks for broadly syndicated loan participation, but the investment thesis relies entirely on Blackstone Credit's internal underwriting and borrower relationships.
How does the fund relate to other Blackstone credit vehicles like BCRED or the Blackstone Private Credit Fund?
The term fund shares the same origination infrastructure but differs structurally—it is a closed-end listed vehicle with a 2027 termination date, whereas BCRED and the Private Credit Fund are non-traded perpetual BDCs. In practice, the PMs scale position sizes across vehicles, creating natural overlap in portfolio holdings when a loan fits all mandates. The term fund's shares trade on an exchange, unlike the other vehicles.
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