Blackstone closes largest ever real estate fund on $20.5bn


Blackstone Group has pulled in a record $20.5bn to close the biggest private equity real estate fund ever raised.

The close of Blackstone Real Estate Partners IX comes four years after the firm amassed $15.8bn for its last global real estate fund in late 2015.

Fund IX’s commitments included $100m from the San Francisco City & County Employees’ Retirement System, $100m from the South Carolina Retirement Systems, $200m from the Michigan Retirement Systems and $150m from the Illinois Municipal Retirement Fund.

In June this year the firm used BREP IX to complete its first investment, the purchase of $19bn-worth of US logistics assets from GLP.

Blackstone Real Estate global co-head Kathleen McCarthy said, “This fundraise reflects the excellent relationships we have with our limited partners given the strong results the BREP funds have generated for them since 1991.

“We are grateful to our investors for their ongoing support and look forward to putting this capital to work on their behalf.”

Blackstone’s real estate business launched in 1991 and since grown its capital under management to $154bn.

The private equity giant’s real estate unit is also investing out of €7.9bn Blackstone Real Estate Partner Europe V Fund and the $7.2bn Blackstone Real Estate Partners Asia II vehicle.

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