Justin Alboum’s Post

PE fund for retail : Blackstone has successfully raised $1.3 billion for its retail-focused private equity fund, BXPE, marking its largest initial sum for such a vehicle. This move reflects a trend among major private equity firms, including Apollo Global, KKR, Carlyle Group, and Brookfield, targeting affluent individual investors. Despite challenges with the Breit fund in 2022, Blackstone is optimistic about BXPE's prospects. The fund, charging a 1.25% management fee and 12.5% performance fee, presents a more complex product, combining various private equity strategies. The fundraising signals a broader effort to diversify Blackstone's investor base beyond institutional clients... #privateequity #PE #blackstone #funding #venturecapital #finance

The overall returns upside is greater — but so is the requirement for patience This week, Blackstone announced that its latest retail product, BXPE, had initially raised more than $1bn. It is a significant milestone for a vehicle that might be a difficult fit for ordinary, if affluent, Joes.    BXPE will make equity investments in leveraged buyouts and the like. Here payouts are more erratic. While the overall returns upside is greater, so is the requirement for patience.   Blackstone’s flagship private equity and related funds have . . . total net annualised returns have been in the mid-teens. For BXPE, Blackstone is taking 12.5% of the profits along with a management fee of 1.25% — somewhat less than the traditional “2 and 20” structure. There are separate potential fees that the investment adviser intermediary may take as well. Retail investors should also ponder another Blackstone product: its own shares. It debuted in a 2007 IPO priced at $31 a share and now trades at slightly more than $120. It has paid $33 a share in total dividends . . . That adds up to an annualised return of about 13%. It is accompanied by the opportunity to buy or sell Blackstone stock at any time.  

Blackstone Group has raised $1.3bn for a private equity (#PE) #fund tailored to wealthy individual clients, signaling a revival of momentum in its efforts to reach #investors beyond its base of institutions such as pension funds. The initial sum raised by the fund, Blackstone Private Equity Strategies Fund, or #BXPE, is Blackstone’s largest ever for a #retail vehicle. The inflows came even after Blackstone was forced to limit withdrawals from a similar $67bn property fund just over a year ago. With $1tn in #assets under management, Blackstone is the world’s largest alternative asset manager. The #BXPE #fund will bring corporate #buyouts, the foundation of Blackstone’s business, to wealthy individual investors in the culmination of a decade-long effort by leaders Stephen A. Schwarzman and Jon Gray to find new sources of #investment cash. Competitors such as Apollo Global Management, Inc., KKR, The Carlyle Group, and Brookfield Asset Management have all designed similar #funds for rich individual #investors. The market has grown in importance to large private equity groups as institutions with excess exposure to unlisted #investments refrain from committing to new #funds. Antoine Gara Financial Times https://lnkd.in/ggH8_P32

🚨 Blackstone raises $1.3bn for its private equity fund catering to wealthy individual clients - This marks Blackstone's largest sum for a retail vehicle and reflects a push to attract investors beyond institutions. - Despite past challenges, including limits on withdrawals from a $67bn property fund, BXPE received substantial initial inflows. - BXPE is part of Blackstone's decade-long effort to extend corporate buyouts to wealthy individuals, diversifying its investor base. - Competitors like Apollo Global, KKR, Carlyle Group, and Brookfield have also launched similar funds for affluent individual investors. - The fundraising for BXPE began in November, reaching $1.3bn by early January, with ongoing efforts to attract more capital. - BXPE charges a 1.25% management fee and a 12.5% performance fee above a 5% annual return, with limited liquidity rights for investors. - Investors can pull up to 3% of the fund’s assets in any given quarter before facing limits, less than the 5% allowed by Breit. - BXPE is Blackstone's most complex product yet, blending private equity strategies, including traditional buyouts and biotech investments. - Unlike Breit, BXPE does not set a dividend, and its prospectus warns of potential differences in asset valuations compared to liquidation values.

Final close: In December, Hellman & Friedman held a final close on its 11th flagship #privateequity fund on $22.3bn, under the $24bn sources said the firm was targeting. The firm also closed a $2.1bn secondary deal that, combined, Hellman said pushed the capital raise to $24.4bn. Fund XI has the same terms as past funds, including the lack of a hurdle rate. Hellman is kicking in about $1.5bn in GP commit. The pool is not yet activated (and not charging fees) as the prior fund is about 80% deployed. Read more here on Buyouts: https://lnkd.in/dd7nQRSu

🚀 Game-Changing Moves in Private Equity: KKR, Knox Lane, Platinum Equity & Emerging Managers 🌟 🚫 KKR ‘turning away’ LPs: The Ascendant Fund by KKR is so highly sought after that it’s now oversubscribed, leading to potential LPs being turned away. ➡ ➡ ➡ https://lnkd.in/ebrNNde6 💰 Knox Lane’s impressive milestone: Despite a challenging fundraising environment, Knox Lane has hit $1bn with their Fund II, showcasing remarkable growth and resilience. ➡ ➡ ➡https://lnkd.in/eiQqY4Vu 📈 Platinum Equity’s major win: Securing $12.6bn for their latest flagship buyout fund, Platinum Equity demonstrates significant strength in a competitive market. ➡ ➡ ➡ https://lnkd.in/e-JqHkZW 🌱 Emerging manager funds on the rise: Even in the toughest fundraising market since the GFC, LPs are still keen on backing new managers. As larger firms struggle to meet targets, emerging managers are stepping in to attract the attention of discerning LPs. ➡ ➡ ➡ https://lnkd.in/eUnaC5G3 🌟 Key takeaway: The current fundraising landscape is shifting, with both established giants and emerging players finding unique ways to appeal to investors. LPs are becoming more selective, prioritizing strategic growth and innovation. #PrivateEquity #Investment #Fundraising #KKR #KnoxLane #PlatinumEquity #EmergingManagers #LPs #BuyoutFunds #PETrends #InvestmentStrategy #Finance #CapitalGrowth #PEInsights #VentureCapital #InstitutionalInvestors #MarketTrends #GrowthEquity #PEFunds #AlternativeInvestments #FinancialMarkets #InvestmentOpportunities #FundManagers #AssetManagement #PEUpdates

A wave of consolidation is sweeping through the private equity secondaries market, as larger asset managers and traditional buyout firms seek to expand their capabilities in this rapidly growing asset class. Sixth Street, Bridgepoint Group and First Eagle Investment Management are reportedly among the suitors pursuing Kline Hill Partners. The Greenwich, Con.-based firm in February publicly disclosed in SEC filings that it had begun raising its Kline Hill Partners Fund V. In a July filing, Kline Hill reported it was nearing its $1.6 billion target, triple the $525 million raised for Fund IV. If Kline Hill is ultimately acquired by a large asset manager, it will be just the latest in a string of similar deals over the last three years: - CVC Capital Partners acquired Glendower Capital. - TPG (Nasdaq: TPG) purchased NewQuest Capital Partners. - Oaktree Capital Management made a strategic investment in 17Capital. - Franklin Templeton purchased Lexington Partners. - Ares (NYSE: ARES) acquired Landmark Partners More recently, Wendel Group CEO Laurent Mignon, in announcing the French shop’s acquisition of private credit provider Monroe Capital on Tuesday, also says the firm is interested in acquiring a secondary provider.   Secondaries are the only asset class where fourth-quartile-performers are reporting profits, according to Bain & Co.

Blackstone has clearly conquered alternative investments, will it now be able to conquer human nature? How can the firm bring the illiquidity advantages of alternative investments into the realm of retail investing where planning horizons and behavioral biases can make "patience" a four-letter word? #alternativeinvestments #privateequity

Pepper Trends Secondaries, a way to buy and sell private equity stakes, are having a moment. While a massive chunk of funding went to just a few big funds, there's potential for significant growth, especially with challenges exiting investments. Sponsor led deals and a shrinking IPO market make secondaries even more attractive. The industry needs to iron out trust and communication issues, but overall, secondaries are likely to become a key tool for managing money in private equity. #Alternatives #PrivateMarkets #Secondaries #PrivateEquity #PrivateAssets #IPO https://lnkd.in/gi7UmECP

Exciting news! Hargreaves Lansdown has announced that it will accept the private equity buyout offer. This move marks a significant development for the company and the industry. Don't miss out on this impactful update! For more details, check out The Guardian's article on this big news. #HargreavesLansdown #PrivateEquity #FinanceNews [Link to The Guardian's article] https://ift.tt/Ww4zLrD