UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-22488

Blackstone Long-Short Credit Income Fund
(exact name of Registrant as specified in charter)

345 Park Avenue, 31^st Floor

New York, New York 10154

(Address of principal executive offices) (Zip code)

(Name and address of agent for service)

Kevin Michel
Blackstone Alternative Credit Advisors LP
345 Park Avenue, 31^st Floor
New York, New York 10154

Registrant’s telephone number, including area code: (877) 876-1121

Date of fiscal year end:   December 31

Date of reporting period: June 30, 2025

Item 1. Report to Stockholders.

Table of Contents

June 30, 2025 (Unaudited)

To Our Shareholders:

Credit Resilience Through the Volatility

Credit markets have weathered an exciting and dynamic few months to round out the first half of 2025, characterized by solid gains, robust supply and healthy spreads, which broadly show little evidence of April’s tariff drama. An almost unwavering supply/demand technical dynamic buffered markets from the impact of global trade and macroeconomic and geopolitical headwinds, allowing investors to take advantage of the opportunities that often arise from more volatile periods.

Persistent demand for higher yielding credit assets against a still-limited new money supply underpinned performance across US loans, high yield and CLOs over the first half of 2025, enabling credit markets to swiftly rebound from the global tariff-related volatility of March and April and wrap the period with solid gains.

US High Yield Index returned 4.57% over the first half of 2025,¹ leading the pack and spurred on by the rally across risk assets at the end of the second quarter. That rally pushed the S&P 500 to an all-time high in June and resulted in a first half return of 6.2%,² while the US 10-year Treasury yield ended the period at 4.2%.³ Ongoing carry across floating rate loans and CLOs supported 2.8% and 2.7% gains for US loans and CLO AAAs, respectively⁴. It was almost a complete reversal of a year ago, when the 4.4% gain for loans outperformed the US High-Yield Index’s 2.6% return over the first half of 2024.⁵

Drilling into the Demand/Supply Technical

In loans, average prices fully retraced April’s selloff. There was a three point increase from April’s low, resulting in a price of $97.1 at the end of June. This pushed the cohort of “par plus” loans to 41% in June, triggering a fresh wave of repricings. ~$28 billion of loans repriced in June and activity picked up pace in July following January’s $138 billion of repricings—the second highest tally on record—when ~65% of the market was priced at par and above.⁶

CLO demand fueled the rebound, as May’s supply, at a six-month high, pushed US CLO volumes to $99 billion in the YTD period, which was just slightly behind 2024’s record pace.⁷ While still small, demand from CLO ETFs continues to strengthen, growing to ~$29 billion, or roughly 5% of the $577 billion US AAA CLO market.⁸ Flows into retail loan funds have proved less stellar, at ~$4 billion of outflows split roughly 50:50 between mutual funds and ETFs through the first six months of 2025.⁹ By contrast, 10 consecutive weeks of flows into US high yield retail funds were driven mostly by high yield ETFs and more than offset April’s $13 billion withdrawal, leaving the YTD net inflows at $11.4 billion.¹⁰

On the other side of the technical ledger, loan and high yield issuance lagged last year despite picking up pace after April’s tariff temporary lull. Fewer refinancings in the first half of 2025 left the $223 billion of institutional loan volume 23% behind where it was in 2024.¹¹ US LBO loan issuance fared better and was up 28% year-over-year, although the flow eased over the second quarter of 2025.¹² Average new issue spreads on M&A related deals tightened to roughly S+325 in May and June, retracing from nearly S+400 in April but not quite returning to February’s post-great financial crisis low of S+307.¹³

Borrowers leveraged the new money shortfall to bring other opportunistic deals such as dividend recaps and hung deals.¹⁴ Private credit has yielded additional financing opportunities, with 15 borrowers refinancing $15.4 billion of direct loans with cheaper broadly syndicated loans over the first half of 2025.¹⁵ High yield issuance lags last year by a similar 22%, dominated by refinancings at ~66%, with LBOs running at about 3% of this year’s volume.¹⁶

Opportunities, and Volatility Ahead

So far, we believe the impact from tariffs on inflation and growth has been encouraging. Ongoing economic data releases reflect a relatively benign backdrop. Global trade, US policy and geopolitical headwinds remain, and we are mindful of the forecasted marginal deceleration in growth towards the end of the year before forecasted improvement in 2026. As such, our base case remains for a soft landing across the US, Europe and the UK.¹⁷

Markets have normalized since the widening in response to the tariff announcements, but the strong technical and resilient data keep us constructive on the credit opportunity ahead. Dampened rate cut expectations support the carry benefit for floating rate loans and CLOs. In the case of the latter, forecasts for ongoing elevated supply could keep US CLO spreads wider vs. this year’s pre-Liberation Day tights. In loans, repricing risk is a consideration, although we believe the magnitude of such risk will be lower than last year because so much spread has come out of the market.¹⁸

Ongoing uncertainty may generate additional bouts of volatility. This volatility may bring fresh opportunities for credit investors, similar to the attractive entry point to high yield that was created by April’s sharp spread widening. High yield spreads have since retraced to ~281bps, although they remain ~25bps above the pre-Liberation day tights. We remain focused on the potential for increased downside risk at current levels, although persistent demand for higher yielding assets heading into the seasonal supply slowdown in August could grind spreads and prices tighter and higher into Labor Day.¹⁹

Finally, the potential for additional volatility and continued credit and manager performance dispersion amid ongoing LME activity highlights the importance of manager selection. Lower-rated CCC credits may have rallied as risk appetite returned in June, but higher-rated loans have continued to lead YTD performance, with CCCs weighed down by steeper market value losses.²⁰ Resilient credit fundamentals such as steady leverage and improving interest coverage should serve as a potential cushion against any increased pressure on corporate balance sheets.²¹ Credit default rates remain historically low.²²

Scaled managers, like Blackstone, with broadly diversified and fully integrated platforms seek to pivot to the best opportunities available to generate alpha. We also aim to stay up in quality and in sectors underpinned by secular tailwinds in an effort to help mitigate downside through the uncertainty ahead.

At Blackstone Credit & Insurance, we value your continued investment and confidence in us and in our family of funds. Additional information about our funds is available on our website at https://www.blackstone.com/our-businesses/registered-products/#closed-end-funds

Sincerely,

Blackstone Liquid Credit Strategies LLC

All figures are approximate and as of June 30, 2025, unless otherwise indicated. The words “we”, “us”, and “our” refer to BSL, BGX and BGB, unless the context requires otherwise. In all other instances, including with respect to current and forward-looking views and opinions of the market and BSL, BGX and BGB’s portfolio and performance positioning, these terms refer to BSL’s, BGX’s and BGB’s adviser, Blackstone Liquid Credit Strategies LLC.

Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These may include BSL’s, BGX’s and BGB’s financial estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements regarding future performance, statements regarding economic and market trends and statements regarding identified but not yet closed investments. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. BSL, BGX and BGB believe these factors include but are not limited to those described under the section entitled “Risk Factors” in their prospectuses and annual reports for the most recent fiscal year, and any such updated factors included in their periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or BSL’s, BGX’s and BGB’s prospectus and other filings). Except as otherwise required by federal securities laws, BSL, BGX and BGB undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Blackstone Senior Floating Rate 2027 Term Fund

Fund Overview

Blackstone Senior Floating Rate 2027 Term Fund (“BSL” or herein, the “Fund”) is a closed-end term fund that trades on the New York Stock Exchange under the symbol “BSL”. BSL’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. Under normal market conditions, the Fund invests at least 80% of its Managed Assets in senior, secured floating rate loans (“Senior Loans”). BSL may also invest in second-lien loans and high yield bonds and employs financial leverage, which may increase risk to the Fund. The Fund has a limited term, and absent shareholder approval to extend the life of the Fund, the Fund will dissolve on or about May 31, 2027.

Portfolio Management Commentary (BSL)

Fund Performance

As of June 30, 2025, BSL outperformed its benchmark, the Morningstar LSTA US Leveraged Loan Index (“Morningstar LLI”), on a Net Asset Value (“NAV”) per share basis for the three-year, five-year, ten-year, and since inception periods and underperformed its benchmark for the six-month and one-year period. On a share price basis, the Fund outperformed its benchmark for the six-month, one-year, three-year, five-year, ten-year, and since inception periods. The shares of the Fund traded at an average discount to NAV of 1.9% for the six months ended June 30, 2025, compared to its peer group average discount of 2.0% over the same period.

NAV Performance Factors

The Fund’s underperformance relative to the benchmark for the six months ended June 30, 2025 was primarily attributable to credit selection within the Fund’s loan allocation. The Fund’s allocation to CLO securities contributed positively to the Fund’s performance for the period. By issuer, the largest positive contributors to performance were Dcert Buyer Inc, Cornerstone OnDemand Inc, and Envision Healthcare Corp. The most significant detractors were CDK Global II LLC, Newfold Digital Holdings Group Inc, and Mitnick Corporate Purchaser Inc.

Portfolio Activity and Positioning 

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were commercial & professional services, capital goods, and automobiles & components; the largest sector underweights included consumer services, materials, and media & entertainment. The Fund slightly increased its asset allocation to CLO securities and decreased its exposure to loans during the period.

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone-credit.com.

Value of a $10,000 Investment

BSL Total Return (as of June 30, 2025)

June 30, 2025 (Unaudited)

Blackstone Long-Short Credit Income Fund

Fund Overview

Blackstone Long Short Credit Income Fund (“BGX” or herein, the “Fund”) is a closed-end fund that trades on the New York Stock Exchange under the symbol “BGX”. BGX’s primary investment objective is to provide current income, with a secondary objective of capital appreciation. BGX will take long positions in investments which we believe offer the potential for attractive returns under various economic and interest rate environments. BGX may also take short positions in investments which we believe will under-perform due to a greater sensitivity to earnings growth of the issuer, default risk or the general level and direction of interest rates. BGX must hold no less than 70% of its Managed Assets in firstand second-lien secured loans (“Secured Loans”), but may also invest in unsecured loans and high yield bonds.

Portfolio Management Commentary (BGX)

Fund Performance 

As of June 30, 2025, BGX outperformed a composite weighting of the Morningstar LLI and the Bloomberg U.S. High Yield Index (“Bloomberg HYI”) (85% loans, 15% high yield bonds) on a NAV per share basis for the one-year, three-year, five-year, ten-year, and since inception periods and underperformed its benchmark for the six-month period. On a share price basis, the Fund outperformed its benchmark for the six-month, one-year, three-year, five-year, ten- year, and since inception periods. The shares of the Fund traded at an average discount to NAV of 4.9% for the six months ended June 30, 2025, compared to its peer group average discount of 2.4% over the same period.

NAV Performance Factors 

The Fund’s underperformance relative to the benchmark for the six months ended June 30, 2025 was primarily attributable to the Fund’s underweight allocation to high yield bonds. The Fund’s overweight allocation to CLO securities contributed positively to the Fund’s performance for the period. By issuer, the largest positive contributors to performance were Dcert Buyer Inc, Cornerstone OnDemand Inc, and Envision Healthcare Corp. The most significant detractors were CDK Global II LLC, Atlas CC Acquisition Corp, and Lasership, Inc.

Portfolio Activity and Positioning 

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were commercial & professional services, financial services, and capital goods; the largest sector underweights included materials, media & entertainment, and consumer services. The Fund increased its allocation to high yield bonds and CLO securities and decreased its exposure to loans during the period.

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone-credit.com.

Value of a $10,000 Investment

BGX Total Return (as of June 30, 2025)

June 30, 2025 (Unaudited)

Blackstone Strategic Credit 2027 Term Fund

Fund Overview

Blackstone Strategic Credit 2027 Term Fund (“BGB” or herein, the “Fund”) is a closed-end term fund that trades on the New York Stock Exchange under the symbol “BGB”. BGB’s primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. BGB invests primarily in a diversified portfolio of loans and other fixed income instruments of predominantly U.S. corporate issuers, including first- and second-lien loans (“Senior Secured Loans”) and high yield corporate bonds of varying maturities. BGB must hold no less than 80% of its Managed Assets in credit investments comprised of corporate fixed income instruments and other investments (including derivatives) with similar economic characteristics. The Fund has a limited term and will dissolve on or about September 15, 2027, absent shareholder approval to extend such term.

Portfolio Management Commentary (BGB)

Fund Performance

As of June 30, 2025, BGB outperformed a composite weighting of the Morningstar LLI and the Bloomberg HYI (75% loans, 25% high yield bonds) on a NAV per share basis for the one-year, three-year, five-year, ten-year, and since inception periods and underperformed its benchmark for the six-month periods. On a share price basis, the Fund outperformed its benchmark for the one-year, three-year, five-year, and ten-year periods, and underperformed for the six- month and since inception periods. The shares of the Fund traded at an average discount to NAV of 4.1% for the six months ended June 30, 2025 compared to its peer group average discount of 2.4% over the same period.

NAV Performance Factors

The Fund’s underperformance relative to the benchmark for the six months ended June 30, 2025 was primarily attributable to the Fund’s overweight allocation to loans and underweight allocation to high yield bonds. The Fund’s credit selection within its high yield bond allocation contributed positively to the Fund’s outperformance for the period. By issuer, the largest positive contributors to performance were Dcert Buyer Inc, Cornerstone OnDemand Inc, and MPT Operating Partnership LP. The most significant detractors were CDK Global II LLC, Mitnick Corporate Purchaser Inc, and Lasership, Inc.

Portfolio Activity and Positioning

During the period, we continued to dynamically manage the Fund. The Fund’s largest sector overweights were commercial & professional services, financial services, and energy; the largest sector underweights included materials, consumer services, and telecommunication services. The Fund increased its asset allocation to high yield bonds and decreased its exposure to loans during the period.

Performance Summary

Performance quoted represents past performance, which may be higher or lower than current performance. Past performance is not indicative of future results. The returns shown do not reflect taxes that an investor would pay on Fund distributions or on the sale of Fund shares. To obtain the most recent month-end performance, visit www.blackstone-credit.com.

Value of a $10,000 Investment

BGB Total Return (as of June 30, 2025)

June 30, 2025 (Unaudited)

June 30, 2025 (Unaudited)

See Notes to Financial Statements.

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See Notes to Financial Statements.

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See Notes to Financial Statements.

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See Notes to Financial Statements.

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See Notes to Financial Statements.

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See Notes to Financial Statements.

June 30, 2025 (Unaudited)

See Notes to Financial Statements.

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See Notes to Financial Statements.

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See Notes to Financial Statements.

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See Notes to Financial Statements.

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See Notes to Financial Statements.

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Amounts above are shown as a percentage of net assets as of June 30, 2025.

Investment Abbreviations:

SOFR - Secured Overnight Financing Rate

Reference Rates:

1M US SOFR - 1 Month SOFR as of June 30, 2025 was 4.32%

3M US SOFR - 3 Month SOFR as of June 30, 2025 was 4.34%

6M US SOFR - 6 Month SOFR as of June 30, 2025 was 4.37%

6M CME TERM SOFR - 6 Month CME TERM SOFR as of June 30, 2025 was 4.15%

See Notes to Financial Statements.

June 30, 2025 (Unaudited)