NEW YORK: Blackstone Inc is betting individuals will turn the firm into a bigger force in roads, ports and data centeres.
The alternative asset manager gathered more than US$1bil for a new infrastructure fund for wealthy individuals, one of the largest initial hauls for such a vehicle.
The fundraising, disclosed in a filing Wednesday, is another sign that Blackstone is moving further from its roots as a private-equity firm backed by institutional investors such as pensions and endowments.
Blackstone now oversees about a fifth of its US$1.1 trillion of assets for individuals and banks’ wealth clients, underscoring how the industry is making inroads to manage the fortunes of dentists, lawyers and other mini-millionaire professionals.
Their US$80 trillion pool of wealth has sparked a race among Carlyle Group Inc, KKR & Co, Apollo Global Management Inc and others to be bigger household names.
Firms once known as buyout cowboys are rethinking their brands. An industry known for secrecy is being forced to become more accessible to regular people and financial advisers – and break through the view that stocks and bonds are the main way to amass wealth.
Greg Blank, who leads digital infrastructure at Blackstone, is chief executive officer of its new infrastructure fund, known as BXINFRA. It’s the latest fund the firm has built for individuals.
The largest, Blackstone Real Estate Income Trust, has faced plateauing growth as investors remain downbeat on property markets.
Infrastructure – a sprawling category that includes bridges, railroads and data centres – can imbue investors with a sense of ownership in the economy that more esoteric financial strategies don’t.
Meanwhile, the sector stands to get a boost from incoming President Donald Trump, who has said he would fast-track approvals and permits for large infrastructure investors.
But big projects are also hard to value and sell. That’s a risk for individuals when they need their money back in a pinch. — Bloomberg
