Blackstone raises $30.4bn for largest real estate drawdown fund ever

Blackstone has announced the final close of its Blackstone Real Estate Partners X fund with $30.4 billion of total capital commitments — the largest real estate or private equity drawdown fund ever raised.

In total, Blackstone’s three opportunistic strategies (Global, Asia, Europe) now have $50 billion of capital commitments.

Why it matters

Where Blackstone leads others follow. In recent years Blackstone has moved its portfolio away from office and shopping centres, asset classes that are facings real shifts in demand, in their place it has around 80 per cent of its portfolio concentrated in logistics, rental housing, hospitality, lab office and data centres. Given their superior performance post-pandemic we should expect hotels to feature highly on the fund’s shopping list.

What they said

Kathleen McCarthy, global co-head of Blackstone Real Estate, said: “In every market cycle we have delivered for our customers by using our insights and advantages to concentrate their capital in investments poised to deliver strong returns. This record-setting fundraise reflects the trust we have built with our limited partners, and we are grateful for their continued confidence as we enter a compelling investment environment.”

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