Blackstone Still Able To Close $10 Billion Funds (BX)

There was an interesting communication from The Blackstone Group, L.P. (NYSE: BX) this morning and the company issued a press release confirming that data. 

Blackstone announced the closing of Blackstone Real Estate Partners VI.  Its total capital commitments are listed as $10.9 Billion. Maybe borrowing money is much tougher from banks that are trying to keep their liquidity and capital ratios from getting too ugly, but this is more than impressive for a capital raise.  It noted that this now makes nine different real estate funds since its inception and this is creating the largest real estate opportunity fund ever raised.

I placed a call into Blackstone for comment on the specifics of the geographic targets of this fund.  Regardless of where it is, closing a $10+ Billion fund in today’s climate is impressive for any geographic region right now.

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Blackstone shares are almost 3% higher today at $16.33 in mid-daytrading.  While this is still a busted IPO of massive proportions,Blackstone shares are more than 20% north of recent lows ($13.40).

Jon C. Ogg
April 1, 2008

Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at [email protected]; he does not own securities in the companies he covers.