May 24, 2019
New York-based Blackstone Group LP is reportedly targeting a $5-billion capital raise for Blackstone Real Estate Debt Strategies IV. The latest real estate debt fund is being set up for public and private debt globally, with an emphasis on the U.S.
The private equity firm sees sustained interest in private real estate debt that’s being driven by a quest for yield by investors. That strategy is supported by the allocations to real estate debt by funds, which totaled $26 billion in 2018 and $33 billion in 2017. Preqin estimates that roughly 40% of assets in real estate debt vehicles have yet to be invested.
Blackstone’s predecessor pool, Blackstone Real Estate Debt Strategies III, raised roughly $4.8 billion in 2016, though it had targeted an initial $4 billion raise. The fund provides mezzanine debt for institutional-grade real estate in North America and Europe. Blackstone has some $140 billion in AUM.
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