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May 30, 2022

Blackstone to expand private credit investing to Europe

American alternative investment firm Blackstone is set to launch a private credit fund aimed at wealthy European investors, reported Bloomberg News citing people familiar with the matter.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

The firm secured regulatory approval for the Luxembourg-based fund, which is said to be the first of its kind in the region.

A spokesperson for Blackstone refused to comment on the new fund.

The move is seen as a vital step in enabling access to private credits for individual investors in the region, who were kept out of the market previously.

In the US, Blackstone and a number of other asset managers have found success with these kinds of funds, which provides increased yields in exchange for higher risk. 

Private credit is gathering momentum in the European asset management space as firms infuse billions into direct financing deals and investors seek to gain sizeable returns.

The new fund is expected to enable Blackstone to expand the reach of its $222bn private wealth business to a set of new European investors.

According to sources, the asset manager intends to run it as a perpetual fund. This will enable investors to deploy and extract their money with more flexibility.

Compared to the fixed-term structure that has traditionally been used for credit vehicles in Europe, the perpetual structure allows managers to maintain a stable capital base for new investments and the potential for more fees in the long run.

Historically, perpetual funds were more popular in the US market.

The US investors have been able to access the private credit market by investing in business development companies (BDCs), that provides direct financing to small, fast-growing firms.

BDCs tend to be run as publicly-traded closed-end funds. There are also an increasing number of non-traded BDCs, including the Blackstone Private Credit Fund.

This February, Blackstone concluded the purchase of a majority stake in India-based ASK Investment Managers.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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