Opportunistic, thy name is Blackstone.
From the Wall Street Journal, July 20:
Latest iteration of main real-estate fund is expected to total $30.3 billion when it is finalized
Blackstone Inc. is in 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.
Blackstone is committing about $300 million of its own capital and already has allocated an additional $5.9 billion to investors, which will bring the fund to $30.3 billion when it is finalized, according to people familiar with the matter. The firm raised the fund, expected to be the largest traditional private-equity vehicle in history, in just three months, they said. Blackstone 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. Together with funds dedicated to real estate in Asia and Europe, Blackstone will have a war chest of more than $50 billion to do so-called opportunistic investments, which tend to be higher-risk deals with the potential for higher returns.
That could allow the firm to take advantage of a downturn in the public markets, which has caused valuations to fall and has led some publicly traded companies to seek new sources of cash. Some of Blackstone’s best-performing deals—like its 2014 purchase of the Cosmopolitan casino and hotel in Las Vegas and its 2016 deal for life-sciences buildings owner BioMed Realty Trust Inc.—were struck during periods of market turmoil....
....MUCH MORE
And just to hammer home Blackstone's apparent strategy:
Blackstone Unloads 304 Units in SoCal for $204M
Earlier:
- Blackstone's Landlord Subsidiary (Home Partners of America) To Stop Purchasing Homes In 38 Cities Tomorrow
- "The housing recession will continue and eventually flatten house prices, Goldman Sachs economist says"
As the old traders used to say about entering into a position: "Well bought is half sold."
