🚨 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.