Risk Factors Update Summary

• Blackstone's portfolio companies might provide goods or services to each other, potentially impacting payments.
• Active management expanded to include the Office of the CIO, increasing oversight and early problem identification. This change might result in enhanced risk management.
• Blackstone Credit & Insurance's AUM increased from approximately $246 billion to $318.9 billion.
• Explanation of potential conflicts of interest and allocation considerations, emphasizing fairness and transparency in decision-making.
• Introduction of procedures to ameliorate conflicts of interest, potentially impacting decision-making processes.
• Increased focus on cybersecurity risks, including ongoing threats and potential unauthorized access to confidential data.
• Compliance with Rule 18f-4 may subject the company to tax treatment changes and loss of RIC status.
• Blackstone Credit & Insurance's private credit investment team has on average 24 years of industry experience.
• The SEC eliminated the asset segregation framework for covering derivatives and financial instruments.
• Blackstone Credit & Insurance's private credit investment team now includes an 84-person Chief Investment Office team.
• Increased regulatory focus on areas related to business could result in additional burdens.
• Sponsor and management alignment now emphasized, questioning incentives and documentation. This change might result in improved partnership decisions.
• Introduction of guidelines for allocation of investment opportunities, aiming to manage conflicts of interest.
• Change in terminology from "portfolio" to "investment" and "pool of assets" to "investment." This change clarifies the company's focus on specific investments.
• Increased focus on Default/Workout strategies and Asset Management for troubled companies. This change might result in better management of distressed assets.
• Blackstone's affiliates could compete for investment opportunities, leading to conflicts of interest.
• Sales of substantial amounts of common shares could result in material dilution for shareholders.
• Compliance with SEC's Regulation Best Interest may negatively impact capital raising ability in public offerings.
• Operational Asset Management responsibilities clarified, focusing on operational improvements and restructuring. This change might result in improved operational efficiencies.
• Blackstone Credit & Insurance's private credit investment team expanded to 626 people globally.
• Changes in accounting guidelines and earnings could affect the value of the investment portfolio.
• Blackstone's ownership in Corebridge Financial Inc. increased to 9.9% from an undisclosed amount.
• Portfolio companies may be subject to cybersecurity risks, affecting business due to data protection changes.
• Clarification on the attribution of economic rights to the company for investments held indirectly, ensuring transparency.
• Investment fit and portfolio construction now scrutinized for concentration risks with specific sponsors. This change might result in diversified and balanced portfolios.
• Rule 18f-4 under the 1940 Act limits a fund's derivatives exposure and financial contracts.
• Investments in junior or unsecured securities pose higher risk of loss in financial distress scenarios.
• Inclusion of details on the allocation of investment opportunities to regulated funds, impacting investment decisions.
• Exit plan considerations added to the Investment Committee process, enhancing focus on successful exits. This change might result in improved exit strategies.
• Enhanced valuation process with Board of Trustees involvement and external service providers. This change might result in more accurate investment valuations.
• Blackstone Credit & Insurance's private credit investment team increased from 138 to 360 persons.
• Allocation methodology considerations updated to ensure fair and reasonable allocation of investment opportunities.
• Investments in consumer loans entail additional risks beyond credit risk, especially during economic downturns.
• Blackstone Credit & Insurance may engage in strategic relationships that could impact investment opportunities.
• The company may form additional CLOs in the future, impacting compliance with the 1940 Act.
• Transition from LIBOR to alternative reference rates may impact investments and financial markets.
• Potential conflicts of interest due to Blackstone's public company status may influence decision-making processes.
• Changes in credit ratings may affect market value of debt securities and impact financial position.