Blackstone Preparing $10B Credit Raise
Blackstone is preparing to launch a $10 billion opportunistic credit fundraise in 2023, following “remarkable” results from the firm’s credit unit.
Blackstone closed its previous fund in the strategy, Blackstone Capital Opportunities Fund IV, in early 2022, providing it $8.75 billion of ammunition.
Blackstone’s CFO, Michael Chae, stated on the company’s Q4 earnings call that the fund would be launched in the “near term” and that the firm also plans to activate its new flagship buyout fund soon, which has raised $18 billion to date towards a target of at least $20 billion, Chae said.
Firm president Jonathan Gray remarked, “Our credit and insurance teams had a remarkable year in 2023, with gross returns of 16.4% in private credit and 13% in liquid credit. These are extraordinary results for a performing credit business.
“The default rate across our nearly 2000 non-investment grade credit is only 30 basis points over the last 12 months.”