Firm News

Making the Connection

Spotting patterns, finding the signal in the noise, making the connection – it all matters in private markets.

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

  1. Capital IQ; based on global data available in Capital IQ’s database, August 2023.
  2. Source: MSCI Real Capital Analytics, as of October 2023.
  3. “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.
  4. World’s largest owner of commercial real estate based on estimated market value per Real Capital Analytics as of September 30, 2023.
  5. Private Equity International, as of March 2023, based on capital raised.
  6. 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.
  7. See footnote 3.

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