Blackstone Inc. has raised $30.4 billion for its new global real estate fund, the largest real estate for private equity drawdown fund ever raised.
The fund, Blackstone Real Estate Partners X, is 48% bigger than the asset management giant’s earlier real estate fund, which closed in 2019.
According to PitchBook data from 2022, the fund is the largest of its kind.
Blackstone has shifted its portfolio away from assets like traditional offices and malls, which have faced headwinds since the pandemic, and toward rental housing, hotels, logistics, lab offices and data centers.
“Pullback with all forms of capital will create opportunities,” said Kathleen McCarthy, global co-head of Blackstone Real Estate. “We can use our capital and expertise to capitalize on the moment for our investors.”
Blackstone shares were up roughly 1% in pre-market trading.
“Sector selection has never been more critical as we witness the bifurcation of performance within real estate,” Ken Caplan, global co-head of Blackstone Real Estate, said in a statement.
The latest fundraising helps establish Blackstone’s status as a leader in the real estate sector. Started in 1991, the private equity real estate business reportedly has $326 billion of investor capital under management.
Blackstone Real Estate Income Trust, one of Blackstone’s real estate vehicles that cater to wealthy individuals, has recently been witnessing high withdrawal requests.
The firm began raising money for the large property drawdown fund in 2022. Three of its strategies — Asia, Europe and global — collectively have $50 billion in capital commitments, Blackstone said.
Blackstone has been a thematic investor focusing on hospitality real estate and adjacent businesses. Last month, an affiliate of PE funds managed by Blackstone entered into a definitive agreement to acquire meetings and technology provider Cvent for $4.6 billion. In 2021, Blackstone and Starwood Capital acquired the Extended Stay America chain and its 650 properties for $6 billion. In 2022, Blackstone acquired Crown Resorts Ltd. in one of the biggest deals in Asia Pacific. The same year, Blackstone and Starwood Capital bought 111 WoodSpring Suites properties for $1.5 billion from Brookfield Asset Management.