Blackstone unveils new structured finance group

The group will comprise real estate debt and other asset-backed finance activities.

Alternative asset manager Blackstone has formed a new structured finance group that will combine its real estate debt and other asset-backed finance activities into one unit, according to a press release.

The group will further scale Blackstone’s lending capabilities across a spectrum of asset-backed finance markets, including consumer finance, real estate, transportation, trade receivables, fund finance and digital infrastructure.

On the formation of the new group, Jonathan Pollack, current global head of Blackstone’s real estate debt strategies, will become global head of the structured finance group. Timothy Johnson will become global head of real estate debt activities and oversee all commercial and residential lending.

“Essentially, we’re building off the blueprint from our real estate debt business to expand our direct origination across asset classes,” said Pollack, in an interview with Private Debt Investor.

“Our influx of insurance capital is driving the expansion of the business and our ability to focus on growth in these asset classes going forward,” Pollack added. “We’ll continue to build and scale our business so we can grow our access to asset-based credit.”

This year has been busy for Blackstone. In January, the firm agreed to buy insurance and life business company Allstate for $2.8 billion. In July, it agreed to pay $2.2 billion for a 9.9 percent stake in the assets backing the life insurance and annuities business of American International Group, giving access to more than $90 billion by 2027.

In March, Blackstone launched its Tactical Opportunities Fund IV, which has a target size of $4.5 billion and focuses on subordinated and mezzanine debt, according to PDI research.

The New York-based firm has $731 billion in assets under management, including investment vehicles in private equity, real estate and non-investment grade credit, among others.