Blackstone assembles biggest real estate debt fund ever

Investment giant raises another $8 billion in hunt for Covid-related opportunities

National /
Sep.September 23, 2020 10:15 AM
Blackstone Real Estate Debt Strategies' Jonathan Pollack (Blackstone; iStock)

Blackstone Real Estate Debt Strategies’ Jonathan Pollack (Blackstone; iStock)

PTA parents can look to Blackstone for fundraising inspiration.

The giant firm gathered $8 billion for a property debt fund born last year and closed this month, making it the largest real estate credit fund ever raised. That’s thanks to low interest rates and the potential for high returns during the pandemic, according to the Wall Street Journal.

“There’s an expectation that there will be a greater opportunity in real estate debt than there has been,” Jonathan Pollack, global head of Blackstone Real Estate Debt Strategies, said in an interview with the Journal.

The money will be used to make new loans and buy real estate debt securities and make other investments.

Manhattan-based Blackstone’s real estate debt business has $26 billion of property debt assets under management, up from $10 billion five years ago. Overall, its global real estate portfolio is valued at $329 billion.

Although fundraising across private-equity firms has fallen from previous years, action is beginning to pick up as companies look to invest in distressed properties.

“Everybody regardless of lender class was assessing their own portfolio,” D. Michael Van Konynenburg, president of Eastdil Secured, told the Journal. “Once people got to July they felt they understood where their own portfolios are and started to ramp up and look for new deals.” [WSJ] — Sasha Jones


Related Articles

arrow_forward_ios
The Cosmopolitan of Las Vegas at 3708 Las Vegas Blvd S and Blackstone CEO Stephen Schwarzman (Google Maps, Getty)
Blackstone marketing Cosmopolitan Las Vegas for $5B
Blackstone marketing Cosmopolitan Las Vegas for $5B
Blackstone buying WPT Industrial in $3B deal
Blackstone buying WPT Industrial in $3B deal
Blackstone buying WPT Industrial in $3B deal
Blackstone, HPP look to expand studio empire to the UK
Blackstone, HPP look to expand studio empire to the UK
Blackstone, HPP look to expand studio empire to the UK
Rendering of 227 West Street with Brookfield's Brian Kingston and Blackstone's Katie Keenan (OMA, Brookfield, Blackstone)
Brookfield lands $500M for next Greenpoint Landing development
Brookfield lands $500M for next Greenpoint Landing development
Blackstone eyes return to hotel business as real estate fuels strong Q2
Blackstone eyes return to hotel business as real estate fuels strong Q2
Blackstone eyes return to hotel business as real estate fuels strong Q2
Starrett-Lehigh Building at 601 West 26th Street and 1740 Broadway (iStock, EQ Office, Suma Industries)
Commercial landlords shake up offices to lure tenants back
Commercial landlords shake up offices to lure tenants back
KKR CEOs George R. Roberts and Henry Kravis with My Community Homes CEO Marcos Egipciaco (Linkedin, iStock)
Another investment firm dips into single-family rentals
Another investment firm dips into single-family rentals
Mark Calabria and Sandra Thompson (Getty, FHFA)
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
Biden ousts Fannie, Freddie overseer, leaving them in government’s hands
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...