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June 14, 2024
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Private Equity

Citywire Selector | Blackstone raises $1.3bn for PE fund aimed at private wealth clients

Blackstone has raised $1.3bn for its private equity fund dedicated to private wealth clients, following a delay in the strategy’s launch last year.  

The Blackstone Private Equity Strategies fund, BXPE, disclosed the amount of capital it attracted in a regulatory filing on Monday. The portfolio of the US-based fund consists of 17 investments.

The fund’s launch follows the introduction of other strategies Blackstone set up for individual investors allocating to private credit and real estate. This is part of the firm’s push to attract more assets from private wealth clients.

These dedicated funds offer periodic liquidity to investors, unlike traditional private markets funds. This meant the firm had to deal with redemption requests during uncertain markets last year.

For example, its real estate strategy, the Blackstone Real Estate Income fund, has been working through redemption requests since November 2022, with investors redeeming a total of $14.3bn since then.

The alternative assets giant previously delayed the launch of BXPE and its European version due to increasing uncertainty in the markets. Citywire previously reported that the firm used the delay to create a better product for the European market and went back to the regulators to resubmit its application. The $1.3bn that was raised doesn’t include the Luxembourg-registered vehicle, which is currently fundraising.

The strategy is set to invest across buyouts, tactical opportunities, life sciences and growth equity.

Blackstone set up its private wealth solutions business in 2011 and about a quarter of its $1tn assets come from this client segment. Its US platform is much more mature than the European business. 

Citywire calculated that 10 of the largest alternative asset managers have captured approximately $510bn in assets from the private wealth client segment.

In the latest roundtable hosted by Citywire, heads of wealth at big private markets firms, including Rashmi Madan, head of EMEA at Blackstone Private Wealth Solutions Group, discussed the importance of semi-liquid strategies for getting a bigger share of assets in this particular client segment. 

Blackstone declined to comment.

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