Blackstone closes $14.6B fund as institutions back private credit
What's the deal? Blackstone has raised about €13 billion ($14.6 billion) for its fourth European Senior Direct Lending Fund, which targets mid-market and upper-mid-market borrowers across the region. The close shows institutional investors remain willing to commit to private credit despite a shaky year for parts of the asset class.
Who's backing it? Pension funds, sovereign wealth funds, and insurance companies, which continue to favour direct lending vehicles run by the largest managers.
What's the endgame? The fund has already taken lead-lender roles in several deals, including Angelini PharmaDealroom has a profile for this one. Try Dealroom →'s take-private of Catalyst Pharmaceuticals, plus loans to German regulatory software firm RegnologyDealroom has a profile for this one. Try Dealroom → and property management firm OdevoDealroom has a profile for this one. Try Dealroom →.
Why now? "Investors are focusing on the fundamentals more than short-term noise and they see a lending backdrop that has become more attractive," said Brad Marshall, global head of private credit strategies at Blackstone Credit & Insurance.
What could go wrong? Private credit faced a wave of redemption requests earlier this year over asset quality and the value of software loans amid advances in artificial intelligence. Blue Owl Capital capped withdrawals at 5% in October, after investors sought to pull 39% and 17% of shares from two flagship funds.
The signal: Blackstone is not alone: Ares ManagementDealroom has a profile for this one. Try Dealroom → is raising its latest US direct lending fund faster than its record-setting predecessor, while ICGDealroom has a profile for this one. Try Dealroom → targets €15 billion for its sixth European fund. "Part of the reason why institutions continue to invest is because they think 20 years ahead," said Chris Fowler, a partner at CVC Credit. "They're going to get contractual cash yield and they don't need the liquidity."
Read more: swissinfo.ch
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