Monday, February 19, 2024

Blackstone surpasses $1 billion mark for evergreen private equity fund aimed at wealthy individuals - MarketWatchMarketWatch Site Logo

Blackstone surpasses $1 billion mark for evergreen private equity fund aimed at wealthy individuals - MarketWatchMarketWatch Site Logo

Blackstone surpasses $1 billion mark for evergreen private equity fund aimed at wealthy individuals - MarketWatchMarketWatch Site Logo

Blackstone Inc. has raised $1.29 billion for its evergreen private equity fund for people with at least $5 million in investments as it builds up its third major pool for individual investors.

Blackstone Private Equity Strategies LP, the fund that’s affiliated with Blackstone BX, -1.20%, on Monday disclosed the sales figure after reports surfaced last year that the fund had launched fundraising efforts.

The fund’s portfolio consists of 17 investments and future commitments to acquire investments totaling up to $1.27 billion, as of Friday, the filing said.

“These investments and commitments span various industries, including digital infrastructure, technology, business services, financial services and aerospace and defense, and include direct, secondary, and structured investments, among others,” the filing said.

Blackstone Private Equity Strategies is being marketed through registered investment advisers and other wealth managers as part of a surge in interest from well-heeled individuals in increasing their exposure to alternative investments outside of traditional stocks and bonds.

Blackstone Private Equity Strategies is sometimes described as the “third leg” of the stool in the firm’s efforts to reach beyond its investor base of institutions along with Blackstone Real Estate Income Trust (BREIT) and Blackstone Private Credit Fund (BCRED).

Blackstone Real Estate Income Trust tipped the scales at $66 billion in assets under management as of Sept. 30 after launching in 2017, while three-year-old BCRED disclosed $61.3 billion in AUM as of the same date.

For its part, Blackstone’s BX, -1.20% firmwide total AUM stood at just over $1 trillion at the end of the third quarter.

Registered funds that take investments from individuals and smaller institutions rose by about $125 billion in 2022 from the previous year to total assets under management (AUM) of $425 billion, according to data from private-equity investor and data provider Hamilton Lane Inc.  HLNE, +2.28%.

Blackstone Private Equity Strategies Fund is open to qualified purchasers, a class of investors that own at least $5 million in investments, as defined under U.S. securities laws.

By contrast, BREIT is open to accredited investors, defined as people with at least $1 million of assets outside the value of their primary residence.

On Dec. 15, Blackstone said it had raised $0 for Blackstone Private Equity Strategies Fund, according to a Form D filing.

Broker dealers listed for Blackstone Private Equity Strategies Fund include H&L Equities LLC, Merrill Lynch, UBS Financial Services Inc., and Morgan Stanley Smith Barney.

Also read: Why wealthy investors put $125 billion into this new type of private-equity fund last year

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