Blackstone Tactical Opportunities Fund II has raised $3.72 billion thus far, according to the firm’s 8 March filing with the US Securities and Exchange Commission, reports PDI sister publication Private Equity International.
Blackstone launched its tactical opportunities platform in 2012 to capitalise on global investment opportunities that are time-sensitive, complex, or in dislocated markets, according to the firm’s website.
According to documents from institutional investors such as Oregon Investment Council and New Jersey Division of Investment, Blackstone’s tactical opportunities funds invest in real assets, private equity, credit, real estate and hedge funds through separately managed accounts of LPs, with a flexible investment holding period.
This is part of a growing trend among private equity firms to break from the typical 10-year lifespan of their funds, offering their investors more flexibility. Last month, The Carlyle Group announced it has secured $3 billion for its long-term vehicle, Carlyle Global Partners, as reported by Private Equity International.
The Tactical Opportunities Fund II received its first commitment on 19 December 2014, the SEC filing said. It is aiming at a target of between $7 billion and $8 billion for this second tactical opportunities fund, according to reports. It consists of separate accounts from large institutional investors able to write bigger checks and a commingled fund for smaller limited partners.
Its investor base includes the California Public Employees’ Retirement System (CalPERS), which committed $100 million and a follow-on of $54 million to Blackstone Tactical Opportunities Fund (KG Co-Invest) in 2015, Florida State Board of Administration, which committed $200 million, Employees’ Retirement System of the State of Hawaii, which committed $35 million, and the New York State Common Retirement Fund (CRF), which committed $400 million, according to PEI Research.
UBS, Morgan Stanley, Bank Julius Baer, and Park Hill Group are serving as advisors to the fund, the SEC filing said, with an estimated commission of $25 million.
The first tactical opportunities platform raised $5.6 billion by the first quarter of 2014, according to PEI’s Research & Analytics division. It received $500 million in commitment from CalPERS, $250 million from Oregon State Treasury, $750 million from New Jersey Division of Investment, and $500 million from CRF, according to PEI Research.
David Blitzer, head of Blackstone Tactical Opportunities Group, could not be reached for comment.