Making the Connection
Nearly 90% of companies are privately held, a vast ocean of opportunity that is only beginning to come into sight for many investors.1 Spotting patterns, finding the signal in the noise, making the connection – it all matters in private markets. At Blackstone, we look across the world’s largest global portfolio of private assets in search of just these types of actionable insights.
Making the connection often means not only identifying a trend, but also the possibilities that emerge from that trend. The rise of e-commerce is decades in the making and a secret to nobody. But Blackstone years ago was able to connect the nascent e-commerce revolution with future warehouse demand. The firm became the largest private investor in logistics globally2 in part because it anticipated a connection between e-commerce and a surge in the need for storage and last-mile logistics.
Another example is artificial intelligence – perhaps the most hotly discussed investment topic today, but which assets truly stand to benefit? Blackstone early on identified data centers as a beneficiary of a range of economic trends. Most recently, data centers have benefited from the once-in-a-generation step function increase in demand from artificial intelligence. This, plus the surge in online streaming, has fueled the expansion of the fastest growing large-scale data center platform worldwide,3 which we see as poised to benefit.
Imagine if you were the largest owner of commercial real estate globally, operator of the largest private equity platform, and also one of the world’s largest credit managers. You would have enhanced abilities to see around corners.
Imagine if you were the largest owner of commercial real estate globally,4 operator of the largest private equity platform,5 and also one of the world’s largest credit managers.6 You would have enhanced abilities to see around corners. This is Blackstone. Managers at scale in private markets have access to portfolio company data that is deeper and more real time than what shareholders in public companies are able to see. The benefit investors receive by going beyond public markets includes access to managers with deep, actionable insights not detectable yet in public markets.
Blackstone continues to be a steward of capital for many institutions and individuals. Firmwide assets under management (AUM) rose to just under $1.1 trillion in the first quarter, a record, with $241 billion in the private wealth channel. Notables in the first quarter included the extraordinary growth of the firm’s data center platform,7 the launch of Blackstone’s perpetual private equity strategy, and strength in both credit fund inflows and in our insurance platform.
Around the world, we are working with more and more financial advisors, providing insights and education on private market opportunities and how these investments might fit into their clients’ portfolios. Our broad educational resources span from our turn-key suite of materials, advisor training, and Blackstone University, to our accessible Essentials of Private Markets series, which is a 101-level guide to private equity, credit and real estate. Select eligible financial professionals can also earn Continuing Education (CE) credit through our on-demand online platform.
As always, we are grateful for your partnership and for entrusting us with your clients’ wealth. We remain committed to providing you institutional-quality investment solutions and continued collaboration which, as we often say, helps you build with Blackstone.
Joan Solotar
Global Head, Private Wealth Solutions
- Capital IQ; based on global data available in Capital IQ’s database, August 2023.
- Source: MSCI Real Capital Analytics, as of October 2023.
- “Fastest growing” reflects Blackstone Proprietary Data and datacenterHawk, as of December 31, 2023. Refers to growth in leased megawatts from Q4 2019 to Q4 2023 of QTS relative to a peer set of the largest data center companies in the U.S. with leased capacity of greater than 100 megawatts as of Q4 2019.
- World’s largest owner of commercial real estate based on estimated market value per Real Capital Analytics as of September 30, 2023.
- Private Equity International, as of March 2023, based on capital raised.
- Based on BXCI analysis of company earnings presentations and calls, as of September 30, 2023 or latest available publicly available data published by BXCI’s peers.
- See footnote 3.
Past performance does not predict future returns. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses. Any investment involves a high degree of risk and you may not get back the amount originally invested. There is no guarantee the trends depicted herein will continue or will not reverse.
All information is as of March 31, 2024 (the “Reporting Date”), unless otherwise indicated and may change materially in the future. Capitalized terms used herein but not otherwise defined have the meanings set forth in the Offering Documents. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon the merits of the investments described herein and any representation to the contrary is an offense.
This webpage (together with any related materials or links, the “Materials”) does not constitute an offer to sell, or a solicitation of an offer to buy, any security or instrument, or a solicitation of interest in any Blackstone vehicle, account or strategy. If any such offer is made, it will only be by means of an offering memorandum or prospectus, which would contain material information including certain risks of investing including, but not limited to, loss of all or a significant portion of the investment due to leveraging, short-selling, or other speculative practices, lack of liquidity and volatility of returns. Nothing herein constitutes investment advice or recommendations and should not be relied upon as a basis for making an investment decision. The foregoing information has not been provided in a fiduciary capacity under ERISA, and it is not intended to be, and should not be considered as, research or impartial investment advice. Nothing herein constitutes investment advice or recommendations and should not be relied upon as a basis for making an investment.
Blackstone Proprietary Data. Certain information and data provided herein is based on Blackstone proprietary knowledge and data. Portfolio companies may provide proprietary market data to Blackstone, including about local market supply and demand conditions, current market rents and operating expenses, capital expenditures, and valuations for multiple assets. Such proprietary market data is used by Blackstone to evaluate market trends as well as to underwrite potential and existing investments. While Blackstone currently believes that such information is reliable for purposes used herein, it is subject to change, and reflects Blackstone’s opinion as to whether the amount, nature and quality of the data is sufficient for the applicable conclusion, and no representations are made as to the accuracy or completeness thereof.
Forward-Looking Statements. Certain information contained in the Materials constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology or the negatives thereof. These may include financial estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, and statements regarding future performance. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. Blackstone believes these factors include but are not limited to those described under the section entitled “Risk Factors” in the Annual Report on Form 10-K for the most recent fiscal year ended December 31, of that year, and any such updated factors included in their respective periodic filings with the Securities and Exchange Commission, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the materials and in the filings. Blackstone undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Highly Competitive Market for Investment Opportunities. The activity of identifying, completing and realizing attractive investments is highly competitive, and involves a high degree of uncertainty. There can be no assurance that a Fund will be able to locate, consummate and exit investments that satisfy its objectives or realize upon their values or that a Fund will be able to fully invest its committed capital. There is no guarantee that investment opportunities will be allocated to a Fund and/or that the activities of Blackstone’s other funds will not adversely affect the interests of such Fund.
Index Comparison. The volatility and risk profile of the indices presented is likely to be materially different from that of a Fund. In addition, the indices employ different investment guidelines and criteria than a Fund and do not employ leverage; as a result, the holdings in a Fund and the liquidity of such holdings may differ significantly from the securities that comprise the indices. The indices are not subject to fees or expenses, and it may not be possible to invest in the indices. The performance of the indices has not been selected to represent an appropriate benchmark to compare to a Fund’s performance, but rather is disclosed to allow for comparison of a Fund’s performance to that of well-known and widely recognized indices. A summary of the investment guidelines for the indices presented are available upon request. In the case of equity indices, performance of the indices reflects the reinvestment of dividends.
Opinions. Opinions expressed reflect the current opinions of Blackstone as of the date appearing in the Materials only and are based on Blackstone’s opinions of the current market environment, which is subject to change. Certain information contained in the Materials discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Recent Market Events Risk. Local, regional, or global events such as war (e.g., Russia/Ukraine), acts of terrorism, public health issues like pandemics or epidemics (e.g., COVID-19), recessions, or other economic, political and global macro factors and events could lead to a substantial economic downturn or recession in the U.S. and global economies and have a significant impact on a fund and its investments. The recovery from such downturns is uncertain and may last for an extended period of time or result in significant volatility, and many of the risks discussed herein associated with an investment in a fund may be increased.
Reliance on Key Management Personnel. The success of a Fund will depend, in large part, upon the skill and expertise of certain Blackstone professionals. In the event of the death, disability or departure of any key Blackstone professionals, the business and the performance of a Fund may be adversely affected. Some Blackstone professionals may have other responsibilities, including senior management responsibilities, throughout Blackstone and, therefore, conflicts are expected to arise in the allocation of such personnel’s time (including as a result of such personnel deriving financial benefit from these other activities, including fees and performance-based compensation.
Third-Party Information. Certain information contained in the Materials has been obtained from sources outside Blackstone, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and none of Blackstone, its funds, nor any of their affiliates takes any responsibility for, and has not independently verified, any such information.
Trends. There can be no assurances that any of the trends described herein will continue or will not reverse. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of, future events or results.
