The World’s Biggest Private Equity Firm, Blackstone, With Nearly $1 Trillion AUM, Just raised more than $30 billion for a giant global real estate fund
The global drawdown fund is called ‘Blackstone Real Estate Partners X’ (BREP X) and is a whopping $10 billion bigger than its previous largest fund.
But what about the problems in the commercial real estate market?
The fund is not targeting traditional real estate sectors such as offices and malls. But rather opportunistic deals in other sectors within the real estate asset class like: logistics, rental housing, labs and data centers.
Ken Caplan, Global Co-Head of Blackstone Real Estate said: “Sector selection has never been more critical”. He also said that Blackstone “is ready to use their capital and expertise to capitalize on market dislocations” referring to what we are seeing in the commercial real estate market right now.
Zooming out, there is an eye-watering $2.3 trillion in available dry powder for private equity firms to deploy. With BREP X, they are doing just that by investing in sectors outside of traditional real estate which have been less affected by the pandemic. This means that investors will be able to benefit from potential returns while also being protected against any further downturns or dislocations in other parts of the commercial real estate sector.