It's become trite, even if accurate, to repeat the Warren Buffett quote that it's only after the tide goes out that you see who's been swimming au naturel.
With banks feeling pain (and some going out of business), lending tighter than ever, and commercial real estate owners and investors facing coming waves of painful refinancing at rates they may not be able to afford, there's been an assumption that private equity could save the day.
Blackstone has been in talks with large regional banks in the U.S. about providing capital for lending, according to the Financial Times. According to company president Jon Gray, the mechanism would work by a bank originating loans and Blackstone moving to its insurance customers, for which it does asset management. The customers would pay a fee to Blackstone.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
