BX · 10-Q · 2026Q2 · Full report

Private Credit Market Demand

Blackstone Inc. · 2026-08-07 · Importance 26 · Surprise 24

Credit & Insurance experienced increased financing and investment activity, supporting transaction and advisory demand and broader fee-revenue growth. Fundraising was strong among institutional clients across non-investment-grade strategies, while long-term structural shifts continued to support investment-grade private credit. Blackstone expects corporate and bank partnerships to support momentum in investment-grade private credit strategies. Direct-lending defaults have risen from historically low levels, but the segment’s holdings are predominantly senior secured credit to institutional borrowers with significant equity subordination.

Key facts

• Credit & Insurance noted fundraising in the segment was strong in Q2 2026, benefitting from strong engagement with institutions across non-investment grade strategies and long-term structural shifts in investment grade private credit. source
• Credit & Insurance said non-investment grade private credit strategies generated modest returns reflecting strong interest income and stable underlying credit performance but were offset by markdowns in select underperforming credits in Q2 2026. source