Blackstone will raise $400 million to boost the credit fund’s lending power. According to a story in the Financial Times on Thursday, Blackstone (BX.N.) is nearing the end of raising about $400 million for its Blackstone Private Credit Fund (BCRED) to acquire additional investing opportunities.
According to the article, which cited papers that the newspaper had access to, the investment manager located in New York intends to raise capital by selling collateralized loan obligations (CLOs) that will be backed by the loans that are now being held by its flagship $52 billion private credit fund.
Reuters’ request for comment was not immediately met with a response from Blackstone. According to the Financial Times, the private equity group will sell the debts that BCRED now holds to the CLO to improve its competitiveness. to improve its competitiveness According to the article, it would sell debt from the software firm Zendesk, the cyber security business Mimecast, and Unified Women’s Healthcare.
Kathleen MacCarthy, the global co-head of real estate for Blackstone, stated in September that the company has seen a considerable decrease in withdrawal requests from its Blackstone Real Estate Income Trust (BREIT). Blackstone is also responsible for the management of several other funds. The previous year, it stopped investors from withdrawing money from BREIT when the amount they wanted out of the fund surpassed a predetermined 5% of its total net asset value.
In August, the Financial Times reported that Blackstone intends to create a private equity fund targeted toward wealthy individuals at the beginning of the following year. In response to that story, Blackstone did not provide a comment.