Blackstone closes $8.75bn fund, surpassing target

The fourth capital opportunities fund has already made 12 investments and commitments, focusing on tech and healthcare.

Alternative investment behemoth Blackstone has held a final close of its fourth capital opportunities fund at $8.75 billion, the firm told Private Debt Investor.

Blackstone Capital Opportunities Fund IV, which the firm said closed in 2021, surpassed its initial $7.5 billion target. The fund will focus on providing private financings for businesses ranging in size and industry.

“We provide private solutions to performing companies – that has been our strategy for a long time, and we’ve seen the market opportunity get bigger,” said Louis Salvatore, co-portfolio manager of Blackstone’s capital opportunities funds, in an interview with PDI.

“There is a secular trend for larger companies desiring private solutions and a lot of attributes that are beneficial for them,” Salvatore added, noting those companies’ focus on customisable solutions in preparing for the public market.

Before changing its name from GSO Capital Partners to Blackstone Credit in 2020, the firm’s $7.12 billion predecessor fund, GSO Capital Solutions Fund III, also surpassed its target of $6.5 billion, closing in March of 2018, according to PDI research.

“The recent evolution into fund four was a highly increased focus on industries in the economy that are growing and have devoted resources into populating a portfolio with a higher growth presence,” Salvatore said, identifying technology and healthcare as industries of high growth.

Blackstone’s latest fund, which launched in June of 2020, received commitments from limited partners including $250 million and $200 million, respectively, from public pension funds New York State Common Retirement Fund and the State of Wisconsin Investment Board, as well as $150 million from the State of Michigan Retirement Systems, a government-related investment organisation, among others, according to PDI research.

New York-based Blackstone holds $731 billion in assets under management in investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment-grade credit, real assets and secondary funds.