(Bloomberg) -- The Bloomberg Invest conference resumed Thursday with some of the most influential leaders in finance gathering in New York. Among them was Blackstone Group CEO Stephen Schwarzman, who announced the final close of the company's latest global real estate fund, Blackstone Real Estate Partners X. The fund raised $20.5 billion in total capital commitments, making it the largest real estate fund ever raised.
Private equity giant Blackstone Group said the final close of its latest global real estate fund, Blackstone Real Estate Partners X, raised $20.5 billion in total capital commitments. The fund is now the largest real estate fund ever raised. The fund will invest in assets across the world, including office buildings, shopping centers, and warehouses.
Blackstone is sitting on a sizable paper loss on the life-insurance spinoff from American International Group that is now worth half its original value. The investment in the AIG spinoff was made in 2016, and Blackstone paid $5.6 billion for a 20% stake. The investment is now worth around $2.8 billion.
Blackstone reaped billions because it figured out early that scruffy urban warehouses were a gold mine in the internet age. The company's investments in logistics have paid off handsomely, as e-commerce has driven demand for more warehouse space.
Higher rates, banks' lending retreat, and strong fees are bringing a raft of newcomers to the product that has quickly turned from a niche to a mainstream option. Blackstone is one of the biggest players in the private credit space, and the company has been expanding its reach into this area in recent years.
Blackstone Inc. is in talks with lenders on a $310 million senior loan coming due in July on an office tower in Chicago's desirable River North neighborhood. The tower is 55% leased, and Blackstone is hoping to refinance the loan to take advantage of lower interest rates.
Talk about some dry powder. Blackstone announced on Tuesday the close of Blackstone Real Estate Partners X, its latest in a series of global real estate funds. The fund raised $20.5 billion in total capital commitments, making it the largest real estate fund ever raised.
Time is a beautiful thing when it comes to investing. Thanks to the power of compounding returns, a small investment in a high-quality company can grow into a massive amount of wealth over time. Blackstone Group has been one of the best-performing investment firms in recent years, and the company's ability to generate strong returns has made it a favorite among investors.
