Blackstone underscores Asia investment opportunity with almost $10bn of new PE, RE capital


Blackstone has secured close to $10bn of new capital targeting the Asian markets by closing a pair of new funds – including the largest-ever real estate focusing on the region.

The firm hit the $7.1bn hard cap for its mammoth Blackstone Real Estate Partners Asia II fund, easily outstripping the $5bn it gathered for its debut fund in the strategy.

Blackstone also revealed it had picked up $2.3bn for the final close of its first private equity vehicle dedicated to the region.

That raise brings its total buyout capital available in Asia to $3.8bn when coupled with its global buyout fund, the firm added.

LPs committed to the Asia PE fund included the Washington State Investment Board, which agreed to invest up to $200m in the fund in April.

Ken Caplan, global co-head of Blackstone Real Estate, said, “The size of this fund – the largest ever dedicated to real estate investing in Asia – gives us flexibility to pursue a range of opportunities and commit capital with speed and scale.”

The firm’s real estate business globally has about $120m in investor capital under management, and a portfolio including hotels, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America.

Blackstone’s global head of private equity Joe Baratta said, “We are thankful for our investors’ support and believe we are well-positioned to seize the ongoing opportunities in Asia.

“The region continues to experience strong growth compared to other major markets, presenting compelling investment opportunities across sectors.”

Earlier this year the private equity giant bought a minority stake in Asia-focused investment firm PAG.

During the first quarter of the year Blackstone’s private equity operation saw carry value increase 6.4 per cent driven by strong appreciation in the portfolio.

Blackstone made $4bn of new investments over the three months included teaming with CVC Capital Partners to buy online payments group Paysafe for £3bn.

Currently, the firm has approximately $111bn of assets under management.

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