Blackstone Closes $8B in Capital Commitments for Fifth Debt Fund

The biggest player on the block continues to grow — this time to the tune of $8 billion. 

Blackstone (BX) announced Friday that it has closed an $8 billion commercial real estate debt fund, Blackstone Real Estate Debt Strategies V (“BREDS V”), for a strategy that is expected to originate loans on commercial real estate projects, and buy both performing and nonperforming loans from banks and other lenders. 

The Wall Street Journal first reported the news. Simpson Thacher advised Blackstone on the fund

Tim Johnson, global head of Blackstone Real Estate Debt Strategies, noted in a statement that his parent firm, Blackstone, is the world’s largest owner of commercial real estate and that his firm holds the largest alternative real estate credit platform on Earth. Blackstone Real Estate Debt Strategies currently has $77 billion of assets under management

“We are extraordinarily appreciative of our investors for allocating this amount of capital during this period of market dislocation,” said Johnson. “BREDS V is well positioned to deliver in this attractive vintage.”

BREDS V is expected to invest in real estate across North America, Europe and Australia, according to the Wall Street Journal.  

The new capital raise comes at an auspicious time for credit strategies. CMBS issuance increased 150 percent year-over-year in 2024, and ended the year at $115 billion in new issuance, according to Kroll Bond Rating Agency. 

Transaction volumes also improved in 2024, with national office sales totaling $41 billion, an increase of 3 percent, and New York City investment sales increasing 26 percent to $28 billion, led largely by sales of office and multifamily assets. 

Brian Pascus can be reached at bpascus@commercialobserver.com