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
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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