Key Takeaways
- • Blackstone has raised approximately $1bn for a private credit continuation vehicle, allowing existing investors to exit while Blackstone retains exposure to the underlying loan portfolio, according to Bloomberg.
- • Allianz Global Investors is the lead buyer in the transaction, alongside StepStone Group, per people familiar with the matter cited by Bloomberg.
- • The vehicle holds assets from Blackstone Capital Opportunities Fund IV, which completed fundraising in 2022 and delivered a net IRR of 11% as of 30 June, according to Blackstone's latest financial disclosures.
- • Evercore advised Blackstone on the transaction, and some of the loans involved will remain with other Blackstone-managed funds.
Summary
Blackstone has raised approximately $1bn for a private credit continuation vehicle, a structure that gives existing investors a path to liquidity while allowing the firm to retain exposure to the underlying loan portfolio, according to Bloomberg. The transaction is designed to let current limited partners exit their positions without requiring the sale of the loans to a broader market.
Bloomberg, citing unnamed people familiar with the matter, reported that Allianz Global Investors is the lead buyer in the deal, alongside StepStone Group. The vehicle holds assets from Blackstone Capital Opportunities Fund IV, which completed fundraising in 2022. According to Blackstone's latest financial disclosures, the original fund has delivered a net internal rate of return of 11% as of 30 June. Evercore advised Blackstone on the continuation fund transaction.
Some of the loans involved will remain held by other Blackstone-managed funds, indicating that the portfolio is being partly redistributed across the firm's vehicles rather than fully transferred to the new buyers. Blackstone and Allianz declined to comment on the report, and Evercore and StepStone did not respond to requests for comment. Terms beyond the approximate $1bn raise, including the exact split between buyers and the pricing of the transfer, were not disclosed in the available reporting.
Bloomberg, citing unnamed people familiar with the matter, reported that Allianz Global Investors is the lead buyer in the deal, alongside StepStone Group. The vehicle holds assets from Blackstone Capital Opportunities Fund IV, which completed fundraising in 2022. According to Blackstone's latest financial disclosures, the original fund has delivered a net internal rate of return of 11% as of 30 June. Evercore advised Blackstone on the continuation fund transaction.
Some of the loans involved will remain held by other Blackstone-managed funds, indicating that the portfolio is being partly redistributed across the firm's vehicles rather than fully transferred to the new buyers. Blackstone and Allianz declined to comment on the report, and Evercore and StepStone did not respond to requests for comment. Terms beyond the approximate $1bn raise, including the exact split between buyers and the pricing of the transfer, were not disclosed in the available reporting.
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