Blackstone is preparing a new collateralised loan obligation through its flagship private credit vehicle BCRED, according to Bloomberg.

BCRED, which manages approximately $82.5bn in assets, is expected to finalise the CLO issuance in the coming days, packaging a broad portfolio of corporate loans into tradable securities.

Proceeds from the transaction are set to be used to refinance existing debt, highlighting the fund’s active capital management strategy.

The deal underscores the growing role of CLOs as a funding tool for private credit platforms, particularly among business development companies seeking to access capital markets efficiently.

Blackstone’s move follows recent steps by BCRED to manage elevated redemption activity, including a $150m capital injection from senior leadership earlier this month.

Despite this, the latest CLO issuance had been planned in advance, reflecting continued confidence in structured credit as a core financing channel.

The top-rated tranche of the deal is expected to price at a spread of around 1.3 percentage points, broadly in line with previous transactions.

The transaction highlights private equity’s expanding footprint in private credit and structured finance, as firms leverage diversified funding sources to support large-scale lending platforms.

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