Blackstone Inc. is an American giant investment management company. Blackstone’s private equity business has been one of the largest investors in leveraged buyouts over the past three decades, while its real estate business has actively acquired commercial real estate. In 2021, the company’s total assets under management were approximately $880 billion.
How is Blackstone acquiring everything?
From April 17 to April 23, Blackstone spent $13 billion on student housing with a deal to buy American Campus Communities. In the past few months, the company acquired Australia’s Crown Resorts for $6.3 billion and reinvested in its European real estate logistics company. Blackstone broke its revenue records earlier this year, thanks in large part to its booming real estate business.
On a recent investor call where Blackstone has reported record earnings. Executives like Jon Gray and Stephen Schwarzman attributed them to the company’s real estate business. Everyone wanted to identify the influential people leading that division, the largest arm of the private-equity giant, with $280 billion of its $915 billion of assets under management. Blackstone’s 17 power players or CEOs have focused on everything from investing in life science lab buildings to Hollywood studios to multifamily apartment buildings. They just grew Blackstone’s empire to a whole new level.
What Blackstone has done exceptionally?
Struck by Nadeem Meghji, the head of real estate for the Blackstone to grab a 49% stake in a Hollywood studio in June 2020, when the pandemic had thrown the economy for a pause.
Also how amazingly these folks accomplish so much at a young age, Katharine Keenan became CEO of Blackstone’s Mortgage Realty Trust at age 36, and 33-year-old David Levine has been involved with $100 billion in transactions since 2010 and is now co-head of America’s acquisitions.
Blackstone’s future trend
These executives are currently investing in various forms of real estate, from apartment complexes in South Florida to housing on college campuses. Other areas include warehouses and biotechnology labs, but there is a noticeable lack of investment in large office complexes. At the pace, they are acquiring everything major office complexes will be there next.