A publicly listed private credit vehicle managed by Blackstone has flagged continued stress in one of its largest holdings, marking down its exposure to software company Medallia, according to a report by Bloomberg.
The Blackstone Secured Lending Fund has reduced the value of its loan to Medallia to around 78 cents on the dollar, down from 87 cents in June, implying a more than 70% cut to the company’s set-up enterprise value. Blackstone said the weaker performance reflected execution issues at the Thoma Bravo-backed business rather than disruption linked to artificial intelligence.
The markdown comes as private credit faces growing scrutiny over credit quality, particularly in software, a sector that has been heavily financed by direct lenders.
Blackstone said Medallia is undergoing a turnaround under a new management team and that discussions around the company’s capital structure are expected. The fund ended the year with $1.5bn of liquidity and expecting a further $2.8bn of loan repayments in 2026.
