Blackstone's (NYSE:BX) private credit fund experienced increased pressure on its portfolio due to markdowns of dental-implant company Affordable Care (ACI Group Holdings) and software company Medallia.

The latest regulatory filing noted that these two holdings were marked down to 60.3 and 69.8, respectively. As a result, the fund saw a spike in non-accrual loans in April.

ACI, headquartered in North Carolina and founded in 1975, operates as a dental support organization specializing in tooth replacement solutions. Medallia provides a software platform that leverages artificial intelligence to capture and analyze customer and employee feedback, its website states.

These markdowns were followed by the firm's first monthly loss since 2022. The 0.4% decline, which happened in February came amid growing investor concerns about the liquidity pressures within the sector.

Despite these portfolio headwinds, Blackstone maintains that BCRED is "well positioned to utilize Blackstone's resources and capabilities to seek to maximize recoveries for our shareholders.”

"We believe our robust valuation process allows us to proactively incorporate changes in portfolio company performance and market conditions," the company wrote in its portfolio update section of the filing.

Blackstone also emphasized the overall health of the portfolio against a volatile first quarter. BCRED's resilience was underscored by its high-quality, senior-secured portfolio and strong balance sheet, the firm noted.

“In our view, BCRED remains well-positioned to navigate today's environment and continue generating durable income for shareholders."

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