The numbers behind a big fundOn Wall Street, one mystery has been whispered about for months: How accurate is the valuation of Blackstone’s flagship real estate fund?
The speculation has arisen because the fund, the $59 billion Blackstone Real Estate Income Trust — more commonly known as BREIT — has managed to keep an “appraised” value of its assets that far exceeds virtually every other real estate fund.
Many rivals have fallen in value, some quite dramatically, in the face of high interest rates and a flagging property market.
BREIT’s performance has floated above its competition, and it has boasted a 10.5 percent annual return since its 2017 debut.
(Those appraisals help to determine a firm’s management fees: The higher the appraisal value, the higher the fees.)
Persons:
—, Blackstone, DealBook’s Andrew Ross Sorkin, Michael de la
Organizations:
Blackstone Real
Locations:
Michael de la Merced