Janney Montgomery Scott analyst John Rowan on Friday initiated coverage of Blackstone Secured Lending Fund /zigman2/quotes/230573550/composite BXSL +1.08% with a neutral rating and a fair value estimate of $30 a share. The rating comes after the business development company went public on Oct. 27 at a price of $26.15 per share. Rowan said the specialty finance unit of Blackstone Inc. /zigman2/quotes/203156858/composite BX -0.62% ranks as the fifth largest business development company (BDC) by assets under management as an investor in first lien debt of middle market companies. "The company's size and scale give it several advantages, notably BXSL runs with a low expense rate and a return profile that exceeds its cost of capital," Rowan said. BXSL's portfolio was comprised of debt and equity invests in 117 portfolio companies with a fair value of $8.22 billion as of Sept. 30. With BXSL now trading above Janney's fair value estimate, analysts see "limited total return potential" with the inclusion of the company's 7% regular dividend yield. Shares of Blackstone Secured Lending Fund closed at $32.39 on Thursday.