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Blackstone slashes private credit value

by | May 13, 2026 | Alt investment, Private Credit

Blackstone slashes private credit and losses may be hard to look at.
In contrast to representations of being a conservative investment, Blackstone slashes private credit.

Poor due diligence is exposed as Blackstone slashes private credit values. Private credit is not the safe investment that advisors asserted.

On May 12, 2026, Reuters reported that Blackstone “slashed” the value of their funds in the wake of regulators warning of systemic risks arising from major banks lending to private credit asset managers. Such slashing occurred not only at Blackstone, but also at BlackRock and Carlyle.

MSCI reported on May 12 that certain private credit funds had loan valuation of less than 50% of value represented. MSCI stated that this ​was “a level typically associated with deep distress or risk of ​restructuring.”

Financial advisors can only recommend this type of private investment when suitable and in the best interests of their investor. Also, the advisor must conduct a reasonable investigation to determine the risks of the investment to know if it is in the best interests of their investor, or any investor.

The investigation into these investments, or the inability to conduct a reasonable investigation due to the opaque nature of the investment, should have been known by advisors.

Jeffrey Pederson represents investors nationwide. He routinely represents investors sold invests that were either unsuitable or where insufficient investigation was done.