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The Ground FloorThe Wrap

Blackstone opportunistic funds fall 3.2%; core-plus funds gain 1.6%

BREIT raised $1.3 billion while real estate AUM slipped to about $309 billion.

At a glance

15-second brief
  • The 3.2% drop in opportunistic funds and 1.6% gain in core-plus funds show markdowns hit higher-risk strategies while lower-risk strategies held up.

  • Real estate distributable earnings fell 10% to $1.68 billion while AUM slipped to about $309 billion from $314.2 billion.

Blackstone's third-quarter real estate results split by vehicle risk: opportunistic funds fell 3.2% after valuation cap rates rose, while core-plus funds gained 1.6% and BREIT raised $1.3 billion.

Real estate distributable earnings fell 10% to $1.68 billion while AUM slipped to about $309 billion from $314.2 billion. The opportunistic arm was the only Blackstone unit to post a third-quarter loss, Commercial Observer reported.

The 3.2% drop in opportunistic funds and 1.6% gain in core-plus funds show markdowns hit higher-risk strategies while lower-risk strategies held up. For advisors comparing Blackstone strategies, that means the third-quarter decline is concentrated in opportunistic funds, not a broad real estate correction.

The real estate arm still drew $6.3 billion of inflows and realized $7 billion during the quarter.

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Sources & further reading
Commercial Observer
In this storyBREITBlackstone
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