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Blackstone raised $1.3 billion for a private equity fund exclusively for private wealth clients after a delay in launching the strategy last year.
Blackstone Private Equity Strategies Fund BXPE disclosed the amount of capital raised in a regulatory filing on Monday. The US-based fund’s portfolio consists of 17 investments.
The fund’s launch follows Blackstone’s introduction of other strategies that allocate to private credit and real estate for retail investors. This is part of the company’s efforts to attract more assets from private wealth clients.
These dedicated funds, unlike traditional private market funds, provide investors with regular liquidity. This means the company has had to deal with redemption claims during a period of market uncertainty last year.
For example, the firm’s real estate strategy, the Blackstone Real Estate Income Fund, has been working on redemption applications since November 2022, and investors have redeemed a total of $14.3 billion since then.
The alternative asset giant had previously postponed the launch of BXPE and its European counterpart, citing heightened market uncertainty. Citywire previously reported that the company used the delay to develop a better product for the European market and went back to regulators to resubmit the application. The $1.3 billion raised does not include Luxembourg-registered vehicles, which are currently being financed.
The strategy is set up to invest across buyouts, tactical opportunities, life sciences, and growth stocks.
Blackstone established its Private Wealth Solutions business in 2011, and about a quarter of its $1 trillion in assets comes from this client segment. The company’s US platform is much more mature than its European business.
Citywire calculates that the 10 largest alternative asset managers have acquired approximately $510 billion in assets from the private wealth client segment.
In a recent roundtable hosted by Citywire, wealth leaders from leading private market firms, including Rashmi Madan, head of EMEA at Blackstone Private Wealth Solutions Group, discussed this particular client’s Discussed the importance of semi-liquidity strategies to capture a larger share of assets. segment.
Blackstone declined to comment.
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