The vehicle, Blackstone Europe Real Estate Partners VII, is the largest external capital pool the firm has ever raised for European property and slightly exceeds its previous record. The fundraising spanned two years, during a period marked by falling asset valuations and rising interest rates that brought an end to a decade of ultra-cheap capital. The successful close underlines Blackstone's continued dominance in real estate fundraising and highlights investor confidence in the firm's ability to navigate cyclical volatility. According to James Seppala, head of European real estate at Blackstone, the latest raise coincides with early signs of recovery in the market. 'We're grateful to our limited partners for their continued trust,' said Seppala, noting that Blackstone launched the fund in February 2023 at a time of heightened disruption across the European property sector. The new fund brings Blackstone's total capital available for deployment across its three flagship opportunistic real estate strategies to $47bn. The close cements the firm's position as a major buyer-in-waiting, with considerable dry powder available to target distressed or mispriced assets as conditions stabilise....
This marks the second time Blackstone has raised $8bn for a real estate debt fund, matching its 2020 record. The firm continues to capitalise on opportunities where banks and traditional lenders face constraints, particularly as rising interest rates impact the sector. Hear more about Blackstone's fundraising efforts at Italy's Largest Private Equity Conference in Milan. 'We are extraordinarily appreciative of our investors for allocating this amount of capital during this period of market dislocation,' said Tim Johnson, global head of Blackstone Real Estate Debt Strategies. 'We could not be more enthusiastic about the opportunities ahead.' Despite a recent decline in real estate fundraising by private equity firms, market indicators point to a recovery. Data from Preqin shows that commercial mortgage-backed securities volumes have nearly tripled in 2024 compared to the previous year. Blackstone's strategy includes acquiring loans from troubled borrowers and lenders looking to reduce their real estate debt portfolios. The firm frequently partners with commercial banks, which retain the senior portion of loans, while Blackstone assumes higher-risk positions with potential for greater returns....
During his three presidential campaigns, Donald Trump promised to run the federal government as though it were a business. True to his word, upon retaking office, Trump put tech billionaire Elon Musk at the head of a new group in the executive branch called the Department of Government Efficiency. DOGE, as Musk's initiative is known, has so far fired, laid off or received resignations from tens of thousands of federal workers and says it has discovered large sums of wasted or fraudulently spent tax dollars. But even its questionable claim of saving US$65 billion is less than 1% of the $6.75 trillion the U.S. spent in the 2024 fiscal year, and a tiny fraction of the nation's cumulative debt of $36 trillion. Because Musk's operation has not been formalized by Congress, DOGE's indiscriminate cuts also raise troubling constitutional questions and may be illegal. Before they go too far trying to run the government like a business, Trump and his advisors may want to consider the very different example of the nation's first chief executive while he was in office....
The investor base includes corporate and public pension funds, endowments, foundations, insurance companies, family offices, and high-net-worth individuals from North America, Europe, and Asia. Employee and limited partner commitments also contributed to the fund's oversubscribed close. RESOF II primarily targets middle-market real estate opportunities in the US and Europe, where Neuberger Berman believes it can exercise greater investment selectivity. Unlike broad portfolio acquisitions, the firm employs a bottom-up, asset-by-asset underwriting approach to maximise value. The previous vintage of the fund raised $712m, and Neuberger Berman sees continued growth potential in the real estate secondaries market. Scott Koenig, head of the firm's real estate secondaries business, stated, 'We are excited by the long-term opportunities in real estate secondaries and humbled by the trust our investors have placed in us. Our goal is to build a well-diversified portfolio of seasoned assets acquired at attractive valuations, offering compelling risk-adjusted returns.'...
EGC, founded in 2021, specializes in decarbonizing heating systems in buildings by planning, financing, and operating central heating units and electricity supply networks. The company currently manages approximately 2 million square meters of real estate across over 100 clients and operates around 800 central heating units. Under the terms of the deal, EGC's founding family and existing shareholders will retain a stake in the company while continuing to lead management efforts. Additionally, engineering service provider ITG, a part of the EGC group, is included in the transaction. Former GETEC Group CEO Michael Lowak will join EGC as chairman to support its expansion. KKR's investment comes as the EU intensifies its decarbonization policies. Buildings account for 40% of the EU's energy consumption and 36% of energy-related greenhouse gas emissions. The European Commission aims for all new buildings to be zero-emission by 2030 and for fossil fuels in building heating systems to be phased out by 2040....
' Hey, Linas here! Welcome back to a ' weekly free edition ' of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it's the only newsletter you need for all things when Finance meets Tech. Elon Musk's ' partners with Visa, marking a major step towards the Everything App vision '' [what it's all about, why it matters & what's next for ' Money + bonus deep dives into Elon's grand vision for the Ultimate Super App] Mastercard continues being payments powerhouse with expanding moat & compelling growth runway '' [breaking down their latest numbers, what they mean & whether Mastercard is worth your time and money in 2025 + bonus deep dives into its competitors] American Express' Q4 2024: premium FinTech powerhouse poised for profitable growth '' [breaking down their Q4 2024 financials, what they tell us & what's next for AmEx + a bonus dive into their competition]...
Good morning & happy Friday! This week in FinTech was just insane, and we're ending it with a very strong note ' Today we're looking at Revolut which is expanding into commercial real estate lending (what it's all about & why it matters + some bonus reads inside), Mastercard that continues being payments powerhouse with expanding moat & compelling growth runway (breaking down their latest numbers, what they mean & whether Mastercard is worth your time and money in 2025 + bonus deep dives into its competitors), and LendingClub's Q4 2024 (it's a digital banking evolution story with improving economics, though execution risks remain + bonus deep dive into its biggest competitor). So let's just jump straight into the amazing stuff ''...
