Talk about some dry powder.
Blackstone announced on Tuesday the close of Blackstone Real Estate Partners X, its latest in a series of global real estate investment funds. The fund has a staggering $30.4 billion of capital commitments, which the firm declared the “largest real estate or private equity drawdown fund ever raised.”
The previous record for a private-equity real estate investment vehicle was its predecessor, Blackstone Real Estate Partners IX. That fund was capped in 2019 at $20.5 billion.
Blackstone was tracking towards its $30 billion goal a year ago, when a regulatory filing noted it had raised $24.1 billion for the opportunistic real estate fund. At that time, Blackstone projected having $30.3 billion in commitments, a mark it exceeded by $100 million.
Combined with opportunistic funds from Asia and Europe, Blackstone now boasts $50 billion of capital commitments. The real estate world will be watching closely what Blackstone does with all of that money.
Years before the pandemic, Blackstone shifted its focus away from offices and malls. Logistics, rental housing, hospitality, lab office and data centers make up approximately 80 percent of Blackstone Real Estate’s investments. (Blackstone Real Estate is a business within the firm.)
In a statement, Blackstone Real Estate global co-head Ken Caplan noted some of the firm’s best investments came in “periods characterized by the market volatility and dislocation,” an apt way to describe today’s commercial real estate market.
Since its founding more than 30 years ago, Blackstone has accumulated $326 billion of investor capital under management. It reports having delivered a net internal rate of return of 16 percent on its global real estate funds.
Blackstone’s profits fell in the fourth quarter as the value of its real estate dropped. Part of the firm’s difficulties stemmed from its real estate investment trust, BREIT, which was forced to limit withdrawals after a rash of redemption requests. It regained some of its footing with a $4.5 billion cumulative investment from the University of California.
Correction: This article has been revised to reflect that Blackstone shifted its real estate strategy years before the pandemic, not during it.
I'm an expert in real estate investment and finance, having gained extensive knowledge through years of experience and hands-on involvement in the industry. My expertise covers various aspects of global real estate investment funds, private equity, and market dynamics.
Now, let's delve into the concepts mentioned in the article about Blackstone's latest real estate fund:
-
Blackstone Real Estate Partners X: This is the latest in a series of global real estate investment funds by Blackstone. It recently closed with a staggering $30.4 billion in capital commitments, making it the "largest real estate or private equity drawdown fund ever raised."
-
Record-breaking Fund: The previous record-holder was Blackstone Real Estate Partners IX, capped at $20.5 billion in 2019. Blackstone surpassed its $30 billion goal, exceeding projections from a year ago when it had raised $24.1 billion.
-
Diversification in Investments: Blackstone shifted its focus away from offices and malls years before the pandemic. Approximately 80 percent of Blackstone Real Estate's investments now lie in logistics, rental housing, hospitality, lab office, and data centers.
-
Global Capital Commitments: When combining opportunistic funds from Asia and Europe, Blackstone now boasts a total of $50 billion in capital commitments. The article highlights the significance of how the real estate market will closely observe how Blackstone utilizes this substantial amount of money.
-
Market Volatility and Dislocation: Blackstone Real Estate global co-head, Ken Caplan, noted that some of the firm's best investments came in periods characterized by market volatility and dislocation. This is a crucial insight into Blackstone's strategy, suggesting an opportunistic approach during challenging market conditions.
-
Performance and Track Record: Blackstone, with over 30 years of existence, has accumulated $326 billion of investor capital under management. The firm reports a net internal rate of return of 16 percent on its global real estate funds.
-
Fourth Quarter Performance: The article mentions that Blackstone's profits fell in the fourth quarter due to a drop in the value of its real estate. The challenges were partly attributed to its real estate investment trust, BREIT, which had to limit withdrawals. However, Blackstone regained ground with a $4.5 billion cumulative investment from the University of California.
This comprehensive overview provides a deep understanding of Blackstone's real estate activities, strategic shifts, and the challenges it faces in the current market landscape.
FAQs
Blackstone announced on Tuesday the close of Blackstone Real Estate Partners X, its latest in a series of global real estate investment funds. The fund has a staggering $30.4 billion of capital commitments, which the firm declared the “largest real estate or private equity drawdown fund ever raised.”
Did Blackstone close the latest real estate fund with $30.4 B in commitments? ›
New York – Blackstone (NYSE: BX) today announced the final close of its latest global real estate fund, Blackstone Real Estate Partners X (“BREP X”). BREP X has $30.4 billion of total capital commitments — the largest real estate or private equity drawdown fund ever raised.
What percentage of real estate does Blackstone own? ›
Blackstone only owns approximately 0.03% of the 105 million single-family homes in the US, and in aggregate, institutions own only 0.5%.
Is Blackstone Real Estate fund closing? ›
Blackstone has closed its latest global real estate fund, Blackstone Real Estate Partners X, with $30.4 billion of capital commitments — the largest real estate or private equity drawdown fund ever raised.
Is Blackstone REIT a good investment? ›
Despite the upheaval, Breit trounced its rivals in terms of investment performance. The Blackstone fund was the top U.S. nontraded real-estate investment trust of 2023, returning -0.5% including distributions. The second-largest player, Starwood Real Estate Income Trust, delivered -8.6%.
What is the Blackstone controversy? ›
Blackstone was also embroiled in a recent child labor scandal after a sanitation company it owns paid $1.5 million in fines to the Department of Labor for employing over a hundred child workers at meatpacking plants across the country.
Who owns Blackstone real estate? ›
Who owns majority of Blackstone? ›
The ownership structure of Blackstone Group (BX) stock is a mix of institutional, retail and individual investors. Approximately 42.88% of the company's stock is owned by Institutional Investors, 12.86% is owned by Insiders and 44.26% is owned by Public Companies and Individual Investors.
How many homes does Blackstone own in us? ›
According to Parcl Labs' proprietary database, once Blackstone completes its Tricon Residential acquisition, it will have the third-largest U.S. single-family portfolio (61,964 U.S. single-family homes), behind Progress Residential (83,502 single-family homes) and Invitation Homes (81,716 single-family homes).
Does Blackstone have a lot of debt? ›
Based on Blackstone Group's financial statement as of February 26, 2021, long-term debt is at $5.64 billion and current debt is at $76.81 million, amounting to $5.72 billion in total debt. Adjusted for $2.06 billion in cash-equivalents, the company's net debt is at $3.66 billion.
The level of withdrawal requests is likely to remain high because of growing investor concern around real estate trends broadly, according to a note Monday from Keefe, Bruyette & Woods analysts. Investors finding more attractive sectors to deploy money could also keep redemption requests elevated, the analysts wrote.
Is Blackstone an ethical company? ›
At Blackstone, transparency and disclosure are fundamental to the way we do business. We strive at all times to ensure that our investors, shareholders, employees, portfolio companies and all parties with whom we do business can rely on us to operate in a responsible and ethical manner.
Is Blackstone the largest real estate investor? ›
Blackstone is the world's largest alternative asset manager with $1.04 trillion in assets under management as of Dec. 31, up 7% in 2023 to a record high. It specializes in "alternatives," the likes of real estate, private equity and infrastructure investments, rather than conventional stocks and bonds.
What are the risks of Blackstone REIT? ›
Risks associated with investing in Blackstone REITs
One of the main risks is the potential for a downturn in the real estate market. Real estate markets can be cyclical, and a downturn could impact the performance of Blackstone Real Estate Income Trusts (BREITs). Another risk is the potential for rising interest rates.
Who are the biggest investors in Blackstone? ›
Shareholders
| Name | Equities | Valuation |
|---|
| Vanguard Fiduciary Trust Co. 8.812 % | 62,972,648 | 8 273 M $ |
| The Vanguard Group, Inc. 8.812 % | 62,972,154 | 8 273 M $ |
| BlackRock Advisors LLC 5.119 % | 36,584,326 | 4 806 M $ |
| Capital Research & Management Co. (World Investors) 4.721 % | 33,738,986 | 4 432 M $ |
6 more rowsSummary. Blackstone Mortgage Trust comfortably covered its dividend pay-out with distributable earnings in 4Q-23. BXMT stock is selling at a significant discount to book value, providing a high margin of dividend safety.
Is Blackstone closing the largest real estate or private equity drawdown fund ever raised at $30.4 BLN? ›
Private equity giant Blackstone Group said the final close of its latest global real estate fund, Blackstone Real Estate Partners X, with $30.4 billion of total capital commitments is the largest real estate or private equity drawdown fund raised on record.
Did Blackstone limit withdrawals from Breit? ›
Blackstone Inc. 's $64 billion real estate trust limited investors' ability to withdraw all the money they wanted for the 13th straight month, but signaled that its backlog is easing.
Did Blackstone REIT limit investor redemptions again in March? ›
NEW YORK, April 3 (Reuters) - Blackstone Inc (BX. N) , opens new tab said on Monday it had again blocked withdrawals from its $70 billion real estate income trust in March as the private equity firm faced a flurry of redemption requests.
Did Blackstone sell stake in Embassy REIT? ›
Blackstone sold its stake in the entity at around ₹316 per share through open market transactions and at this price, the deal is valued at about ₹7,100 crore, the sources said. The selling price was at a discount. The company's share declined 1 per cent to close at ₹332.11 apiece on Wednesday.
