Biggest real estate investor
The Blackstone Group L.P. (BX) is the world’s biggest real estate investor. The company manages seven global opportunistic real estate funds, four European real estate funds, and an Asia-focused fund.
Blackstone has one of the most innovative real estate funds in the world with the strong support of scalable capital. Overall, its total revenues are $3 billion, which is 7% less than last year. This is mainly because of overall slowness in the real estate sector. Blackstone’s funds have outperformed compared to other real estate investment companies.
Deterioration in holdings
The overall performance of Blackstone’s funds in the last year witnessed deterioration in terms of performance as well as investment income. Fourth quarter revenues were down by 37% compared to the last quarter of the previous year. The realizations were up for the full year, to $19.9 billion. The company is trying to diversify its portfolio by redeployment and investment of new capital outside the United States.
Blackstone has delivered results in real estate that are par compared to its peers in the alternative management space. Its peers include the Carlyle Group (CG), KKR & Co. L.P. (KKR), Apollo Global Management (APO), and T. Rowe Price (TROW). Its peers also include other major players that form part of the Financial Select Sector SPDR Fund (XLF) and the iShares U.S. Financials ETF (IYF).
Blackstone is finding good investment opportunities in Asia and Europe. It has invested more than 60% of its capital outside the United States. Specifically in the real estate sector, Blackstone has raised $9.7 billion of new capital in 2014. This reflects higher investor confidence in the company’s real estate capabilities.