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Blackstone — Blackstone Floating Rate Enhanced Income Fund — Investor Presentation (2022)
16 slides from Blackstone's investor presentation, Apr 18, 2022
Slide 1: Blackstone Floating Rate Enhanced Income Fund
Blackstone Floating Rate Enhanced Income Fund SYMBOLS: CLASS I CLASS D CLASS T CLASS T-I CLASS U BGFLX BGFDX BGFTX BGFPX BGFVX An investor should consider the investment objective, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other informat
Slide 2: Why BGFLX? A floating rate portfolio that seeks to deliver attractive income
WHY BGFLX? A floating rate portfolio that seeks to deliver attractive income Income Generation Efficient Structure Blackstone Floating Rate Enhanced Income Fund (BGFLX) An interval fund structure reduces the need to hold cash and seeks to provide attractive income primarily from floating permits the
Slide 3: Why Floating Rate Senior Loans?
WHY FLOATING RATE SENIOR LOANS? An income-oriented strategy targeting floating rate senior loans Senior loans (also referred to as leveraged loans or Senior Secured Debt bank loans) are so named because they sit at the top (Floating Rate Senior Loans) of a company’s capital structure Senior loan
Slide 4: Floating rate senior loans have low correlation to traditional fixed income
PORTFOLIO DIVERSIFIER Floating rate senior loans have low correlation to traditional fixed income Correlation to Bloomberg U.S. Aggregate Bond Index (Trailing 20 years as of December 31, 2021) The relatively low correlation of floating rate senior loans to traditional 1.00 fixed income investments m
Slide 5: Incorporating floating rate senior loans may create a more efficient fixed income portfolio
PORTFOLIO DIVERSIFIER Incorporating floating rate senior loans may create a more efficient fixed income portfolio Enhancing Hypothetical Return Profile by Inclusion of Floating Rate Senior Loans (Hypothetical Portfolio: Trailing 15 Years Ending December 31, 2021) 4.55 60% Floating Rate Senior Loans,
Slide 6: Why Interval Funds?
WHY INTERVAL FUNDS? A Structure that Aligns Better with the Interval Funds May Offer Benefits Relative Underlying Liquidity of the Asset to Mutual Fund and Closed-end Structures (days to settlement) Same Day 2 Days 23 Days Mutual Listed Fund / Interval Closed-End Treasuries Stocks, Corporate Floatin
Slide 7: Why Blackstone Credit?
WHY BLACKSTONE CREDIT? Blackstone is a premier alternative investment firm, and Blackstone Credit is one of the world’s largest credit managers $243B in AUM $111B $132B liquid credit strategies alternative (long only) investment funds >1000 9 years corporate issuers Blackstone Credit in invested Bla
Slide 8: Same People, Same Process
SAME PEOPLE, SAME PROCESS Investment Scale Insight Expertise Breadth Focus Investment expertise and market insight across Primarily dedicated to below investment grade public and private, large and small companies, corporate credit senior and subordinated debt 433 23 yrs professionals globally(1) av
Slide 9: Terms and Fees
TERMS AND FEES Key Terms Product BGFLX is an interval fund focused on providing attractive current income with low sensitivity to rising rates. The Fund expects to invest at least 80% in floating rate loans, notes, or bonds, which is anticipated to be primarily senior loans Symbol Class I: BGFLX Cla
Slide 10: What Are the Risks?
WHAT ARE THE RISKS? Floating rate senior loans are rated below investment investment-grade counterparts or may provide lower recovery rates in the grade. What does that mean for investors? event of a default. This means they may be more vulnerable in a recession, however, managers may seek to mitiga
Slide 11: Important Disclosure Information and Risk Factors
IMPORTANT DISCLOSURE INFORMATION AND RISK FACTORS Key Risk Factors Certain countries have been susceptible to epidemics, most recently COVID-19, which may be designated as pandemics by world health authorities. The outbreak of such epidemics, together with any resulting restrictions on travel or qua
Slide 12: Important Disclosure Information and Risk Factors (Cont'd)
IMPORTANT DISCLOSURE INFORMATION AND RISK FACTORS (CONT’D) Loans Risk. Under normal market conditions, the Fund will invest primarily in Loans. The Loans that the Fund may invest in include Loans that are first lien, second lien, third lien or that are unsecured. In addition, the Loans the Fund will
Slide 13: Important Disclosure Information and Risk Factors (Cont'd)
IMPORTANT DISCLOSURE INFORMATION AND RISK FACTORS (CONT’D) Important Disclosure Information (Cont’d) The Materials contain highly confidential information regarding Blackstone and a Fund’s investments, strategy and organization. Your acceptance of the Materials constitutes your agreement that the Ma
Slide 14: Important Disclosure Information and Risk Factors (Cont'd)
IMPORTANT DISCLOSURE INFORMATION AND RISK FACTORS (CONT’D) Important Disclosure Information (Cont’d) Epidemics/Pandemics. Certain countries have been susceptible to epidemics which may be designated as pandemics by world health authorities, most recently COVID-19. The outbreak of such epidemics, tog
Slide 15: Important Disclosure Information and Risk Factors (Cont'd)
IMPORTANT DISCLOSURE INFORMATION AND RISK FACTORS (CONT’D) Important Disclosure Information (Cont’d) Performance Calculations. Unless otherwise stated, all Internal Rate of Return (“IRR”) and multiple on invested capital (“MOIC”) calculations, as applicable, include realized and unrealized values an
Slide 16: Important Disclosure Information and Risk Factors (Cont'd)
IMPORTANT DISCLOSURE INFORMATION AND RISK FACTORS (CONT’D) Important Disclosure Information (Cont’d) Target Allocations. There can be no assurance that a Fund will achieve its objectives or avoid substantial losses. Allocation strategies and targets depend on a variety of factors, including prevaili
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