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There’s not a lot of easy money to be made in real estate these days. We’re late in the cycle, things are expensive, and those that aren’t require a good deal of work. And yet the Blackstone Group just broke its own record for largest commercial real-estate fund ever.

Blackstone real-estate chief and future CEO Jon Gray says this is because his firm is having no trouble finding things to spend money on.

“Despite the challenging investment environment we deployed a record $56 billion over the past 12 months,” said Mr. Gray in July during a second-quarter earnings call.

Still, one can’t help but wonder if Gray & co. are drooling over the prospect of the president unintentionally starting a global depression and creating $20.5 billion in attractive real-estate opportunities all over this formerly great land.

Some private-equity firms are stockpiling cash, partly because they are having difficulty finding properties to buy and partly because deals might be more plentiful in a downturn when owners are distressed. As of September, firms had $334.8 billion of “dry powder,” compared with $243.6 billion at the end of 2016, according to Preqin.

Blackstone Closes Largest-Ever Real-Estate Fund at $20.5B, Firm Says [WSJ]



Private Equity Firm Acting Like A Private Equity Firm

The Blackstone Group will take your money and then the dividends that could be used to pay you back.

By Thomas Wolf (Der Wolf im Wald) (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Blackstone Buying All The European Office Space Because Brexit

Those leaving London have to go somewhere, and wherever it is, Blackstone will own it.

By Lishabai Yi (Middle Kingdom Media Ltd.) [CC BY-SA 4.0], via Wikimedia Commons

Steve Schwarzman Ensures He’ll Be Remembered For More Than Just Making A Ton Of Money

His obituary will now include lines like, “providing aid and comfort to an insurrectionist” and, maybe, “man whose odiousness inspired the legislative dismantling of the private equity industry.”