Blackstone Inc. is looking to raise over $10 billion across two private loan funds in Europe and the US, according to people with knowledge of the matter, as the firm seeks to further capitalize on the growth of private credit.
(Bloomberg) — Blackstone Inc. is looking to raise over $10 billion across two private loan funds in Europe and the US, according to people with knowledge of the matter, as the firm seeks to further capitalize on the growth of private credit.
The direct-lending funds, one in euros and the other in dollars, are targeting capital from institutional investors for a fixed term, said the people, who aren’t authorized to speak publicly on private matters. A spokesperson for Blackstone declined to comment.
Blackstone Credit and other major private debt managers such as Ares Management Corp. and HPS Investment Partners are increasingly able to write larger cheques for borrowers as their coffers swell. Private funds with more than $5 billion took the largest share of capital raised in the first half of the year, according to a report by PitchBook this week.
Deals in the $1.5 trillion private credit market, which has burgeoned into a competitive funding tool for private equity firms, are coming thick and fast.
This week alone, Bloomberg News reported on direct-lending firms working on plans for potential multi-billion dollar buyouts of Adevinta, Kereis and Iris Software. Blackstone, meanwhile, is helping fund the combination of New Mountain Capital’s HealthComp Holding Company LLC and Marlin Equity Partners’ Virgin Pulse.
The industry growth is being driven by investment bank caution around underwriting leveraged buyouts given volatile market conditions.
Blackstone has about $295 billion in its newly-formed credit and insurance unit.
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