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Why Diversification Beats Concentration Lessons from Blackstone's $380M Private Credit Markdown

Sometimes the market provides perfect teaching moments. On August 6, 2025, Blackstone Secured Lending Fund delivered one when it marked down its largest holding—a private credit loan to Thoma Bravo-backed software company Medallia Inc. —to approximately 87 cents on the dollar.

—to approximately 87 cents on the dollar. This single position represented 5. 37% of the fund's net assets, totaling more than $380 million at par but now valued at around $338 million—a $42 million hit from one loan.

37% of the fund's net assets, totaling more than $380 million at par but now valued at around $338 million—a $42 million hit from one loan. The markdown represents a continued decline from 94 cents two quarters ago to 89 cents last quarter.

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