Income Taxes

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Taxable income differs from net increase (decrease) in net assets resulting from operations primarily due to: (1) unrealized appreciation (depreciation) on investments, as gains and losses are generally not included in taxable income until they are realized; (2) income or loss recognition on exited investments; and (3) other non-deductible expenses.

The Company makes certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which include differences in the book and tax basis of certain assets and liabilities, and non-deductible expenses, among other items. To the extent these differences are permanent, they are charged or credited to additional paid in capital, undistributed net investment income or undistributed net realized gains on investments, as appropriate. For the years ended December 31, 2024, 2023 and 2022, permanent differences were as follows:

	For the Year Ended December 31,
	2024		2023		2022
Undistributed net investment income (loss)	$	10,423	$	19,037	$	18,239
Accumulated net realized gain (loss)	$	27,503	$	17,695	$	(12,226)
Paid In Capital	$	(37,926)	$	(36,732)	$	(6,013)

During the years ended December 31, 2024, 2023 and 2022, permanent differences were principally related to non-deductible offering costs, gains and losses related to foreign currency, and partnership investments.

The following reconciles the increase in net assets resulting from operations to taxable income for the years ended December 31, 2024, 2023 and 2022:

	For the Year Ended December 31,
	2024 (1)		2023		2022
Net increase (decrease) in net assets resulting from operations	$	3,484,528	$	3,363,183	$	663,070
Net change in unrealized (appreciation) depreciation	97,287		(615,705)		1,045,678
Realized gains (losses) for tax not included in book income	(479,261)		(188,075)		31,297
Non-deductible capital gains based incentive fees	—		—		(15,058)
Other non-deductible expenses and excise taxes	37,574		35,795		5,117
Realized losses for tax not recognized	612,779		489,701		220,696
Taxable/distributable income	$	3,752,907	$	3,084,899	$	1,950,800

(1)Tax information for the fiscal year ended December 31, 2024 is estimated and is not considered final until the Company files its tax return.

The components of accumulated gains / losses as calculated on a tax basis for the years ended December 31, 2024, 2023 and 2022 were as follows:

	For the Year Ended December 31,
	2024		2023		2022
Distributable ordinary income	$	972,389	$	712,713	$	190,977
Capital losses carried forward	(612,779)		(489,701)		(220,696)
Other temporary book/tax differences	799		872		(2,856)
Net unrealized appreciation / (depreciation) on investments, derivatives, and foreign currency	(478,314)		(380,039)		(981,364)
Total accumulated under-distributed (over-distributed) earnings	$	(117,905)	$	(156,155)	$	(1,013,939)

Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized by the Company may get carried forward indefinitely, and retain their character as short‐term and/or long‐term losses. Any such losses will be deemed to arise on the first day of the next taxable year. Capital losses for the years ended December 31, 2024, 2023 and 2022, which will be deemed to arise on the first day of the tax years ended December 31, 2025, 2024 and 2023 were as follows:

	For the Year Ended December 31,
	2024		2023		2022
Short-term:	$	79,742	$	98,417	$	86,229
Long-term:	$	533,037	$	391,284	$	134,468

The cost and unrealized gain (loss) of the Company’s investments, as calculated on a tax basis, at December 31, 2024, December 31, 2023 and December 31, 2022 were as follows:

	For the Year Ended December 31,
	2024		2023		2022
Gross unrealized appreciation	$	737,027	$	603,243	$	236,140
Gross unrealized depreciation	(1,356,878)		(933,876)		(1,303,014)
Net unrealized appreciation (depreciation)	$	(619,851)	$	(330,633)	$	(1,066,874)
Tax cost of investments	$	69,039,629	$	51,074,545	$	49,975,483

All of the dividends declared during the years ended December 31, 2024 and December 31, 2023 were derived from ordinary income, as determined on a tax basis.

During the year ended December 31, 2022, $1,798.4 million and $0.0 million of the dividends declared were derived from ordinary income and capital gains, respectively, as determined on a tax basis.

BCRED Investments LLC, a wholly owned subsidiary that was formed in 2021, is a Delaware LLC which has elected to be treated as a corporation for U.S. tax purposes. As such, BCRED Investments LLC is subject to certain U.S. Federal, state and local taxes. For the years ended December 31, 2024, 2023 and, 2022 BCRED Investments LLC recorded an income tax provision of $8.9 million, $0.0 million, and $0.0 million, respectively. For the years ended December 31, 2024 and 2023, BCRED Investments LLC recorded a deferred tax liability of $8.9 million, and $0.0 million, respectively, which is significantly related to GAAP to tax outside basis difference in investment in certain partnership interests and included within Accrued expenses and other liabilities in the Consolidated Statements of Assets and Liabilities.