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Friday, January 27, 2023

Blackstone Will get Additional $500 Million From College of California

(Bloomberg)—The College of California is investing $500 million extra into Blackstone Inc.’s large actual property fund for rich traders, including to a $4 billion dedication earlier this month.

The brand new funding, which is predicted to shut March 1, can have the identical construction, phrases and charges because the college’s preliminary stake in Blackstone Actual Property Earnings Belief, based on a press release Wednesday. These phrases embody a six-year lock up of the cash, with Blackstone contributing $125 million to assist a minimal 11.25% annual return.

Blackstone constructed BREIT right into a $69 billion actual property behemoth that owns properties from Las Vegas’s Bellagio lodge and on line casino to pupil housing and storage facilities, serving to develop the non-public fairness agency’s attain with wealthy people. However BREIT got here below stress final 12 months with extra traders searching for to tug cash out given the shift in markets, inflicting Blackstone to restrict withdrawals from the belief in December for the primary time.

BREIT’s institutional class shareholders acquired an 8.4% complete return in 2022, when most actual property funds misplaced cash and shares and bonds declined.

© 2023 Bloomberg L.P.

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