Blackstone Raises Record $30.4 Billion for Real Estate Fund

The private equity giant has shifted from offices and malls to logistics, rentals and hospitality assets.

Blackstone has raised $30.4 billion of total capital commitments for its Blackstone Real Estate Partners X, the private equity firm’s most recent global real estate fund. The firm says it is the largest real estate or private equity drawdown fund ever raised. 

The firm, which boasts a 16% net internal rate of return for its global real estate funds over the past 30 years, stated it is moving away from assets such as traditional offices and malls, which have struggled since the beginning of the COVID-19 pandemic. According to Blackstone, the fund is approximately 80% concentrated in logistics, rental housing, hospitality, lab offices and data centers.

“We believe the current market is tailor-made for Blackstone Real Estate,” Ken Caplan, global co-head of Blackstone Real Estate, said in a release. “We have made some of our best investments in periods characterized by the market volatility and dislocation we see today.” Caplan added that, “Sector selection has never been more critical as we witness the bifurcation of performance within real estate, which is favoring our high-conviction themes.”

Investors in the new fund include the Teachers’ Retirement System of Louisiana, the Arkansas Teacher Retirement System and the Oklahoma Teachers’ Retirement System, according to a published report.

Blackstone, which claims to be the largest owner of commercial real estate in the world, said its real estate business has approximately $326 billion of investor capital under management. But not everything has been rosy for the firm in recent months.

In December 2022, it had to limit withdrawals from one of its real estate income trust funds because too many investors were cashing out.

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