Avison Young Markets $30M Non-Performing Loan Portfolio

Blackstone Leads JV on Recap of SoCal Office Portfolio

Across the board, Blackstone achieved gross organic inflows of $38 billion and returned $14 billion to investors, driving the company to record total assets under management of $205 billion over the last 12 months, which Schwarzman described to investors as a “megacycle.”

“We continued doing what we’ve been doing for 27 years – generating compelling returns for our limited partner investors across our diversified platform,” he said. “Our investors clearly trust Blackstone to manage their capital and provide solutions to their unique needs, and we’ve continued to capture market share as a result.”

Schwarzman explained that revenues for quarter were up materially from last year driven by a significant increase in performance fees, reflecting the continued improvement of operating fundamentals across the company’s office, retail and hotel portfolios. According to the earnings report, debt strategies drawdown funds ($2.3 billion) were up 5.1% for the quarter and 11.6% year-to-date, while the hedge fund ($800 million) were up 6.2% for the quarter and 14.6% year-to-date.

In addition, significant performance fees were generated by real estate funds, including the latest close of its $13.3 billion global real estate fund, BREP VII, reportedly the largest opportunistic real estate fund on record. More than 250 investors committed to the fund, including a $500 million investment from China’s State Administration of Foreign Exchange and $575 million from GE Capital Real Estate to acquire a 16.4-million-square-foot industrial portfolio from Dexus Property Group.

In total, company invested $1.4 billion of total capital with an additional $1.8 billion committed but not yet deployed at the end of the quarter, bringing year-to-date total capital deployed and committed to $6.3 billion. It also returned $659 million of cash to investors during the quarter bringing year-to-date to over $2 billion.