Blackstone debt fund holds final close

August 28, 2013

Blackstone debt fund holds final close

The Blackstone Group has raised an additional $406 million in equity commitments for its Blackstone Real Estate Debt Strategies II (BREDS II), according to a filing with the Securities and Exchange Commission.

http://www.irei.com/blog/?p=1089

The value-added fund previously held a close in early July. In total, BREDS II has raised $1.74 billion since its launch in October 2012. The real estate debt strategy fund had a $4 billion fundraising goal. Despite being below its target, the firm will not be raising additional capital.

BREDS II invests primarily in mezzanine debt, with a focus on preservation of investor capital where the last dollar of risk is well below current values and replacement cost. Investments will be located in North America and Europe. Through this strategy, BREDS II seeks to generate attractive returns and make quarterly current income distributions to its limited partners.

BREDS II is part of the firm’s Blackstone Real Estate Debt Strategies platform, which was created in 2008 in response to the dislocation in the global real estate and credit markets.

Blackstone has been actively fundraising. Last week, the firm launched a fourth billion-dollar European fund, Blackstone Real Estate Partners Europe IV. And it held a $1.5 billion first close for Blackstone Real Estate Partners Asia; the opportunistic fund is Blackstone’s first fund that focuses exclusively on Asia.

http://www.irei.com/blog/?p=1089