Blackstone said it raised $30.4 billion for its latest real estate fund, as the private equity giant looks to double down on the industry.
The fund, called Blackstone Real Estate Partners X, is 48 percent bigger than the asset management giant’s previous real estate fund which closed in 2019.
In total, Blackstone’s three opportunistic strategies (Global, Asia, Europe) now have $50 billion of capital commitments.
Blackstone will aim to spend 80 percent of its PE funding on logistics, rental housing, hospitality, lab office and data centers, shifting away from assets like traditional office and malls that are facing headwinds from a post-pandemic adoption of flexible work and surge in e-commerce.
“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.
Blackstone has delivered a 16 percent net IRR on over $100 billion of committed capital in the BREP global funds over more than 30 years.
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.”