Blackstone banned withdrawal of investors’ funds
2023.02.01 14:54
Blackstone banned withdrawal of investors’ funds
By Tiffany Smith
Budrigannews.com – The Blackstone Group In response to an increase in redemption requests from investors looking to cash out, Inc. announced on Wednesday that it had blocked withdrawals from its $69 billion real estate income trust (BREIT) in January.
According to BREIT, it fulfilled approximately $1.3 billion in redemption requests in January, or 25% of the approximately $5.3 billion in withdrawal requests it received that month. According to the company, the fulfilled withdrawal requests also account for 2% of the fund’s net asset value.
After receiving a flurry of requests that exceeded a predetermined 5% of the fund’s net asset value, Blackstone began exercising its right to prevent investor withdrawals from BREIT in November of the previous year.
During an analyst earnings call last week, Blackstone President Jonathan Gray stated that redemption requests are anticipated to remain elevated but will normalize over time as Blackstone works through its backlog. Early on Wednesday afternoon, shares of Blackstone were trading at $93.59, a decrease of 2.4 percent.
Blackstone announced last month that the University of California would put $4 billion into shares of BREIT after the company pledged $1 billion to guarantee the university’s returns on the fund. The university then added another $500 million to its investment, bringing the value of its BREIT shares to $4.5 billion.
In the meantime, Blackstone announced on Wednesday that Wesley LePatner, who will continue to hold the position of chief operating officer for BREIT, would succeed Frank Cohen as global head of the Blackstone core plus platform.
