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☆ Blackstone closes PE secondary funds at record $25 billion
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +1 min

Jan 18 (Reuters) - Blackstone Inc (BX.N) raised a record $25 billion for two funds that dabble in secondaries and co-investments, the asset manager said on Wednesday. Strategic Partners IX raised $22.2 billion, the world's largest secondaries fundraise ever, while Strategic Partners GP Solutions raised $2.7 billion. Blackstone Strategic Partners is its illiquid fund investing arm that provides a range of liquidity solutions to both investors and private equity sponsors. Founded in 2000, Blackstone Strategic Partners had $67 billion of assets under management as of Sept. 30 last year. New York-based Blackstone's unlisted real estate income trust also secured a $4 billion investment from the University of California earlier this month.

☆ Private equity acquires a taste for drug development
▼ + stars: | 2023-01-09 | by ( David Carnevali | ) www.reuters.com time to read: +6 min

Jan 9 (Reuters) - Private equity firms that deemed drug development too risky for their liking in the past are increasingly investing in the sector, raising dedicated funds and coming up with deals that compensate them for the uncertainty involved. These deals are not structured as the leveraged buyouts that private equity firms are mostly known for. In most cases, the drug makers start paying the money back to the private equity firms when the drug is being developed, either by issuing equity, tapping cash on hand or borrowing. They also share a slice of the newly developed drug's revenue with the private equity firms once it's approved. Private equity firms also provide capital to spin out drugs into new companies.

☆ Blackstone used this data tool to upend its real-estate business. Now it's being deployed across its PE portfolio.
▼ + stars: | 2023-01-06 | by ( Carter Johnson | Bianca Chan | ) www.businessinsider.com time to read: +4 min

Blackstone Chief Technology Officer John Stecher told Insider that Blackstone now uses Data Direct — previously called Real Estate Data Direct — across both its real estate and private-equity portfolios. From real estate to private equityInsider first detailed the launch of Data Direct, then known as Real Estate Data Direct (REDD), last year. That led to the roll out of the data tool to other parts of the business, like Blackstone's private-equity portfolio, and to new business lines next year. Data Direct, at its heart, is a data tool, and its success is predicated upon importing reliable information in the first place. Having good, clean data has made Data Direct very successful," he added.

☆ Blackstone's Wien and Zidle see mild recession, market bottom by mid-year in annual 'surprises' list
▼ + stars: | 2023-01-04 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The Wall Street veteran published his much anticipated annual surprises list Wednesday. Wien started the tradition in 1986 when he was the chief U.S. investment strategist at Morgan Stanley, and his list of surprises became a must-read on Wall Street. "Despite Fed tightening, the market reaches a bottom by mid-year and begins a recovery comparable to 2009," Wien said. Wien thinks that, while the Fed is successful in dampening inflation, it "over-stays" its time in restrictive territory. Meanwhile, Wien thinks that China will edge toward its growth objective of 5.5% and work aggressively to re-establish strong trade relationships with the West.

☆ Wall Street's competitive and rigorous internship process could use a facelift
▼ + stars: | 2023-01-04 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Wall Street's version of the Hunger Games — nabbing a summer internship at an investment bank — is about to kick off. Thousands of college students are eagerly refreshing investment banks' careers pages awaiting applications to open for internships for the summer of 2024. (Yes, you read that right, this summer's internship spots have already been wrapped up for a while.) It's a process that results in young people making decisions that will set them on a certain path for years to come. Despite a difficult end to the year for the bank thanks to a costly fine, Wells' investment bank was actually among the top 10 advisors in M&A in 2022, Bloomberg reports.

☆ Blackstone's Jon Gray breaks down 'massive' $4 billion BREIT investment from University of California
▼ + stars: | 2023-01-03 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBlackstone's Jon Gray breaks down 'massive' $4 billion BREIT investment from University of CaliforniaJon Gray, Blackstone president and COO, joins 'Squawk Box' to discuss the University of California's investment in Blackstone's real estate fund, why BREIT holders should be happy with the investment and more.

☆ University of California to invest $4 bln in Blackstone real estate fund
▼ + stars: | 2023-01-03 | by ( ) www.reuters.com time to read: +1 min

Jan 3 (Reuters) - University of California's fund manager said on Tuesday it will invest $4 billion in Blackstone Inc's (BX.N) real estate fund, barely a month after the asset manager limited withdrawals from the fund due to a surge in redemptions. REITs, one of the core strategies that helped Blackstone become the world's biggest alternative asset manager, suffered a setback in December as investors concerned about China's economic prospects and turmoil in the Asian markets withdrew money at a frenetic pace from the real estate fund. The investment in Blackstone Real Estate Income Trust is through UC Investments, which manages a portfolio of nearly $152 billion, according to its website. UC Investments can redeem its holdings over two years after January 2028 and will get an 11.25% minimum annualized net return on its investment, partially supported by a $1 billion commitment from Blackstone. Reporting by Niket Nishant in Bengaluru; Editing by Subhranshu Sahu, Shinjini Ganguli and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ The University of California invested $4 billion with Blackstone to buy up rental apartments and student housing, which they see as the bright spots in the real estate market this year
▼ + stars: | 2023-01-03 | by ( Robert Davis | ) www.businessinsider.com time to read: +4 min

The University of California is investing $4 billion with Blackstone to acquire rentals and student housing. The investment comes at a crucial time for Blackstone's Real Estate Income Trust Inc. fund — also known as BREIT— a $68 billion property investment vehicle. "We consider BREIT to be one of the best positioned, large-scale real estate portfolios in the US, managed by one of the world's top real estate investors," said Jagdeep Singh Bachher, the University of California's chief investment officer. The University of California's investment could become a model for other universities with large endowment funds — typically in the billions of dollars — that want to invest in real estate investment trusts or commercial real estate assets. BREIT's portfolio includes assets in popular college towns such as Fort Collins, Colorado, where Colorado State University is located, and Baton Rouge, Louisiana, which is home to Louisiana State University, according to the fund's website.

☆ Here's what mattered in hedge funds and asset and wealth management in 2022
▼ + stars: | 2022-12-28 | by ( Jeffrey Cane | ) www.businessinsider.com time to read: +4 min

To be sure, some big investors like macro hedge funds have been notable exceptions to the market gloom. As we do our own account settling for the year, here is some of our best reporting on the buy-side: hedge funds, asset managers, and wealth management. Tiger, Tiger burning bright. Four years later, the hedge fund, founded by two former Millennium executives, has yet to live up to the lofty expectations for it. Among the money managers benefiting from these political moves are Bank of New York Mellon and Federated Hermes.

☆ Proptech is losing money left and right, but Fifth Wall's Brendan Wallace is ready to spend $866 million as the sector enters its 'proving ground'
▼ + stars: | 2022-12-26 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +5 min

Fifth Wall's Brendan Wallace says today's rough markets are a "proving ground" for the industry. Earlier this year, it announced a $500 million climate fund and a $147 European proptech fund. There are also fewer paths to go public, as the blank-check-company model that takes companies public with fewer disclosures via a merger has dried up. After successfully bringing SmartRent public via its own blank-check company in 2021, Fifth Wall canceled its second blank-check company in March of this year. Procore, which raised $634.5 million in a public offering in May 2021, is an investor in the new Fifth Wall fund.

"[But] private equity funds still have significant amounts of dry powder, and by the second half of next year, they will be looking to put some of it to work," he said. Private equity firms normally buy companies with a combination of debt and equity. "Ticket sizes across the private credit industry are likely to come down depending on the deal. Banks often highlight debt funds' - or direct lenders - higher prices and more stringent documentation requirements as competitive disadvantages to the syndicated loan and junk bond markets. But some see private credit as part of the solution at a time when money is scarce.

☆ A data tool Blackstone built for its real-estate empire is now being used across its PE portfolio. Here's why it could play a key role in the investing giant uncovering new deals.
▼ + stars: | 2022-12-19 | by ( Carter Johnson | Bianca Chan | ) www.businessinsider.com time to read: +4 min

The firm built Data Direct for its real-estate business, but is now using it across private equity. Blackstone Chief Technology Officer John Stecher told Insider that Blackstone now uses Data Direct — previously called Real Estate Data Direct — across both its real estate and private-equity portfolios. From real estate to private equityInsider first detailed the launch of Data Direct, then known as Real Estate Data Direct (REDD), last year. Data Direct, at its heart, is a data tool, and its success is predicated upon importing reliable information in the first place. Having good, clean data has made Data Direct very successful," he added.

☆ Goldman Sachs has plans for deep headcount cuts in the new year
▼ + stars: | 2022-12-19 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

But first, the Goldman cuts go deep. Goldman's bankers and others on Wall Street still enjoy pay packages that are beyond that of most American workers. Some portion of Goldman's cuts are being made with an eye to 2023 and 2024, suggesting that the firm's leaders don't expect a return to go-go days anytime soon. Click here to read more about the cuts set to hit Goldman Sachs. Private-equity firm Advent announced plans to acquire satellite maker Maxar Technologies for $6.4 billion in a deal that included Goldman Sachs, JPMorgan, and Morgan Stanley.

☆ Blackstone's real estate fund for wealthy prompts SEC queries - Bloomberg News
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: 1 min

Dec 16 (Reuters) - The U.S. Securities and Exchange Commission (SEC) has reached out to Blackstone Inc (BX.N) following an increase in investors pulling money from its real estate fund, Bloomberg News reported on Friday, citing people familiar with the matter. Earlier this month, the asset manager limited withdrawals from the $68-billion Blackstone Real Estate Income Trust after receiving too many redemption requests. The regulator is trying to understand the market impact and circumstances of the events, according to the report, which added that the inquiries aren't any indication that the firm is under investigation or committed any wrongdoing. Blackstone and the SEC did not immediately respond to Reuters requests for comment. Reporting by Mehnaz Yasmin in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ The SEC is reaching out to Blackstone and Starwood after the real-estate giants limited investors' withdrawals from their funds, report says
▼ + stars: | 2022-12-16 | by ( Alex Nicoll | Rebecca Ungarino | ) www.businessinsider.com time to read: +3 min

Investors are pulling their money from big real estate funds at a quick pace. Blackstone and Starwood recently limited investors' ability to withdraw. The real estate funds have recently seen a surge in withdrawal requests amid a broad drop in investor sentiment and potential economic downturn. Representatives for the SEC and Starwood did not immediately return requests for comment on Friday. But this year has brought challenges as the real estate market sours and more investors are turning bearish.

☆ These 20 execs are powering the $1.2 trillion private-credit market
▼ + stars: | 2022-12-16 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

So who's behind this mysterious market that has now swelled to $1.2 trillion and accounts for more than 20% of the aggregate capital leverage companies borrowed? Insider's Rebecca Ungarino mapped out 20 of the most powerful people in the space from firms like Sixth Street, Golub Capital, Ares, and Blackstone. When PE firms start hunting for deals, these are the tech companies they'll target. Some tech companies are instructing managers to label low performers on their teams, potentially signally more cuts at some point in 2023. Turns out, having one room dedicated to booze isn't enough for the ultra-wealthy, The Wall Street Journal reports.

☆ It's the most wonderful time of the year: PE giants Blackstone and Apollo just dropped their holiday videos with starring roles for their billionaire CEOs
▼ + stars: | 2022-12-15 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +4 min

Private-equity giants Blackstone and Apollo released their holiday-themed videos on Thursday. In Apollo's, employees are chefs and cook up a holiday meal for the firm at the CEO's request. So it goes in the world of private-equity firms' holiday videos, where straight-laced investors and billionaire chief executives get very into their starring roles and the jokes are a little on the nose. The secret thing that makes Blackstone, Blackstone," he responds. Finally, as he puts on a Santa hat, Blackstone CEO Steve Schwarzman says the secret is the great people they hire.

☆ Blackstone may slow the launch of private equity fund after investor withdrawals, Financial Times reports
▼ + stars: | 2022-12-10 | by ( ) www.reuters.com time to read: +1 min

Dec 10 (Reuters) - Blackstone Inc (BX.N) has warned of possible delays to the launch of a new private equity fund designed for wealthy individuals, as it copes with heavy investor withdrawals at two other funds in real estate and credit aimed at a similar clientele, the Financial Times reported on Saturday. The New York-based investment manager has been preparing to open a fund called the Blackstone Private Equity Strategies Fund (BXPE), the report said, adding that would become its flagship strategy for rich individuals to participate in its private equity business. The clients of Blackstone's other "retail" products expected the fund to be launched by early 2023, FT said. The asset manager earlier this month limited withdrawals from its $69 billion real estate income trust (REIT) after receiving too many redemption requests. Reporting by Lavanya Ahire in Bengaluru Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Blackstone chief defends real estate fund amid rush for withdrawals
▼ + stars: | 2022-12-08 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

Investors nervous about Blackstone's real estate investment trust should view it as a long-term vehicle that's well-positioned for the future, the firm's president said Thursday. Blackstone has taken heat over the past week for limiting withdrawals from the $69 billion private REIT, the Blackstone Real Estate Income Trust (BREIT). Blackstone President and Chief Operating Officer Jon Gray defended the positioning and structure, noting that investors knew BREIT had limits on redemptions. Publicly traded REITs have gotten slammed this year amid a rising interest rate environment that has hit the real estate market especially hard, raising questions about the actual values of holdings in private funds such as Blackstone's BREIT. The $35 billion Vanguard Real Estate ETF , for example, has tumbled 26% year to date.

☆ Blackstone's credit fund reaches withdrawal limit
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +1 min

This is the first time redemption requests had reached the pre-set limit of 5% since Blackstone launched the product in January last year. Blackstone Private Credit Fund (BCRED) received withdrawal requests from its investors that were about 5% of the fund's outstanding shares in the fourth quarter that ended on Nov. 30, according to a regulatory filing. Blackstone said all redemption requests made to BCRED will be honored and that the fund has $8 billion of immediate liquidity. "We saw net positive flows this quarter as investors sought compelling yields in high-quality assets with little volatility." Reporting by Chibuike Oguh in New York; Editing by Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

☆ Blackstone's grand ambitions for attracting retail money faces a hiccup
▼ + stars: | 2022-12-02 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

It's also a key part of the firm's push to attract retail investors, Insider's Rebecca Ungarino reports. Bloomberg previously reported that both firm CEO Steve Schwarzman and President Jon Gray have each put $100 million of their own money into BREIT since July. But as nice as it is to have the bosses' money backing your fund, that's not the target audience. And while there is a lot of upside to attracting retail investors — its private wealth arm has quadrupled in size to $233 billion in assets in four years — there are risks, too. Click here to read more about the recent headwinds facing Blackstone's big bet to attract retail money.

☆ Blackstone's bet on small investors bites the private-equity giant as investors pull out of its high-profile real-estate fund
▼ + stars: | 2022-12-01 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +4 min

BREIT, as the large real-estate fund is known, has been key to the firm's retail investor push. Blackstone, the $951 billion private-equity behemoth, is better known for its big buyouts, splashy deals, and real-estate market domination than its products catering to individuals. BREIT, as the real-estate fund is known, has posted a return of 9.3% so far this year and a 15.5% three-year annualized return, according to its website. But investor sentiment has appeared to turn for this real-estate fund, posing a challenge for the firm's retail push. Last month, Credit Suisse downgraded Blackstone stock over concerns in BREIT and BCRED.

The largest property owner on the Las Vegas Strip is doubling down and taking full ownership of the MGM Grand Las Vegas and Mandalay Bay, which the deal values at $5.5 billion. VICI currently owns a 50.1% stake in the property, which it acquired when it bought MGM Growth properties in May. Strip casinos are seeing a 20% surge in revenue through October to $6.8 billion in gaming revenue from a year ago. "It's further evidence that Las Vegas remains amongst the most in-demand destinations in the world," said Rosemary Vassiliadis, Clark County's director of aviation. And hotel revenue in Las Vegas was up 51% in October compared with October 2019, before the pandemic, according to the Las Vegas Convention and Visitors Authority.

Nonetheless, they fueled investor concerns about the future of the REIT, which makes up about 17% of Blackstone's earnings. "People are taking profits at the value Blackstone says their REIT shares are at," said Snyder. As a result, the REIT allowed investors in November to redeem $1.3 billion, equivalent to approximately 43% of investors' repurchase requests. Some analysts said Blackstone's REIT runs the risk of getting caught in a spiral of selling assets to meet redemptions if it cannot regain the trust of its investors. On Blackstone's third-quarter earnings call in October, Gray blamed REIT redemptions on market volatility, which he said had driven away individual investors from active equity and fixed income funds.

☆ Blackstone is a top pick in financials ahead of a potential Fed pivot, Morgan Stanley says
▼ + stars: | 2022-11-30 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

It's time to buy Blackstone as investors prepare for a pivot from the Federal Reserve, according to Morgan Stanley. Analyst Betsy Graseck named the private equity giant a top pick in financials, with an overweight rating, saying the stock is attractive entry point after its decline this year. The stock was hampered this year by a challenging macro environment that the analyst expects will continue to be an issue in the months ahead. Still, the analyst expects that Blackstone is a "long-term winner" that investors will turn more positive on as the Federal Reserve winds down their aggressive interest rate hiking campaign. Separately, the analyst removed LPL Financial from the Finest Financials list after downgrading the stock to equal weight from overweight.

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