The firm was dealing with another test: A Blackstone real estate fund was forced to limit redemptions in late 2022 when investors got jittery about property markets and ratcheted up requests for cash.
The Blackstone Real Estate Income Trust since showed signs its backlog is easing, with withdrawal requests in December falling 80% from its January 2023 peak. The firm has said that BREIT has outperformed public rivals since inception. Still, it was a high-profile reminder that individuals run for exits when markets turn.
Blackstone’s private equity fund will still offer investors liquidity — within limits.
Investors can take out up to 3% of the fund’s net asset value each quarter. They stand to forgo a fraction of the value of their shares if they cash out before two years.
While BXPE isn’t charging traditional buyout fund’s fees of 2% of assets and 20% of profits, it’s pricier than many traditional stock funds. BXPE investors will pay 1.25% on net asset value and 12.5% of total returns as long as it notches 5% gains.
The fund will take in money continuously and have no deadline to exit bets, with a goal of gaining as much as tens of billions of dollars.
This article was provided by Bloomberg News.