BLACKSTONE WAR CHEST PRIMED TO EXPLOIT REAL ESTATE COLLAPSE – The Real Estate investment giant Blackstone is creating a $30 billion war chest to exploit the coming real estate collapse. If true, it could be the largest “traditional private-equity vehicle in history.” In 2019, it made similar moves ahead of the Covid shutdowns, with a $26 billion fund.
According to the WSJ, Blackstone is the final stages of raising a new real-estate fund that would set a record as the biggest vehicle of its kind, defying market volatility and a crowded landscape for fundraising.
The private-equity giant said in a regulatory filing Wednesday it has closed on commitments totaling $24.1 billion for Blackstone Real Estate Partners X, the latest iteration of its main real-estate fund.
According to the WSJ, Blackstone is committing about $300 million of its own capital and has allocated an additional $5.9 billion to investors, which will bring the fund to $30.3 billion when it is finalized. The firm raised the fund, expected to be the largest traditional private-equity vehicle in history, in just three month. It was also Blackstone that set the prior record, with the $26 billion buyout fund it raised in 2019. The new real-estate fund will be 50% larger than its predecessor, a $20.5 billion pool raised in 2019.