As one of the world’s largest alternative asset management companies, Blackstone has built a highly successful alternative investment business over the past few decades. With over $387 billion in assets under management, Blackstone’s alternative investment platform focuses primarily on private equity and real estate. Some key takeaways regarding Blackstone’s alternative investment funds include:
Blackstone Was Originally Focused On Alternative Investments
Blackstone was founded in 1985 with a focus on alternative investment strategies like private equity, real estate, and distressed debt. The firm initially helped advise large institutional clients on alternative investments before launching its own private equity funds in the 1990s. Today, alternative investments still make up the bulk of Blackstone’s assets under management and drive the majority of its profits.
Strong Track Record Across Multiple Alternative Asset Classes
Over its 30+ year history, Blackstone has compiled an impressive investment track record across private equity, real estate, credit, infrastructure, and other alternative asset classes. Its private equity funds have delivered net internal rates of return (IRRs) of approximately 20% annually since inception, a remarkable achievement given the asset class. Such standout returns have enabled Blackstone to continue attracting institutional capital and expanding its alternative investment platform.
Innovator In Alternative Investment Structures and Strategies
Blackstone has pioneered several innovative approaches within the alternative investment industry. For example, the firm developed a complex ownership structure upon its IPO that allowed it to retain aspects of a partnership while tapping public markets for growth capital. Blackstone has also been creative on the investment side – its Tactical Opportunities Fund combines features of both private equity and hedge funds to pursue flexible, opportunistic plays across asset classes.
Large, Diversified Investor Base Anchored by Institutions
Unlike more retail-focused asset managers, Blackstone relies primarily on large institutional clients to raise capital for its alternative investment vehicles. Massive pension funds, endowments, foundations, and sovereign wealth funds provide the bulk of the firm’s assets under management. Blackstone’s strong brand name, sector expertise, and track record of generating alpha enable it to keep attracting clients despite charging premium fees for access to its funds.
In summary, Blackstone has cemented itself as an alternative investment powerhouse over the past 30+ years. Its private equity, real estate, and credit platforms anchor a successful alternatives franchise focused on institutional investors. Superior returns and constant innovation in structures, strategies and asset classes have fueled the growth of Blackstone’s alternative investment funds.