Mike Wiebolt

What are the biggest headwinds and tailwinds to increased transaction activity today? 

We think the “three C’s” are propelling recovery across commercial real estate: Construction is collapsing, cash flow is growing, and capital is returning. Secular growth themes like AI infrastructure and the digital economy are driving capital deployment opportunities, and improving liquidity in the debt markets is helping bring buyers and sellers closer together. 

Early signs of renewed deal-making suggest we’re nearing a tipping point for transaction acceleration, which our business is capitalizing on. From our vantage point, the biggest headwind is still elevated interest rates.

Which lending and investment opportunities that didn’t exist last year are you leaning into today?

We’re serious about sticking to our high-conviction themes — but we like to find new ways to play them. I like to say that, while credit quality is our north star, we are packaging agnostic. I think the team has done a great job assessing relative value across geographies and products. We’ve been an active lender across the cost of capital spectrum on a global basis, found ways to expand our partnerships with banks, and captured an attractive opportunity set in the public markets.

The variety of ways in which we can deploy capital is a competitive advantage that allows us to deliver for our borrowers while aiming to create a differentiated experience for our investors.

Which transaction made you most proud this year? 

We’re extremely proud to have closed BREDS V with $8 billion in total capital commitments this year, making it one of the largest real estate debt funds ever. This gave us dry powder to invest in a highly compelling environment, and the flexibility and scale of the fund allowed us to find large and differentiated ways to capitalize on that environment. BREDS acquired about $2 billion in commercial real estate loans from Atlantic Union Bank, bolstering our high-quality credit portfolio through an arrangement customized to suit both sides of the transaction. BREDS also agreed to purchase nearly $1 billion in single-tenant lease financing loans from First Internet Bancorp, broadening our lending exposure and enhancing our capacity to deliver tailored financing solutions across asset types.

 As a nonbank, what’s your biggest competitive advantage over banks?

First, I’d emphasize that there’s space for everyone at the table. In terms of our strengths, market volatility demands both adaptability and conviction. We leverage the deep well of expertise, data and insights from across Blackstone’s real estate portfolio. This makes us both sharper and more agile as investors, enabling us to structure deals that meet our borrowers’ objectives while responding strategically to market dynamics.

Have the capital markets’ resiliency surprised you over the past few years?

We’ve always focused on leveraging our market insights to skate where the puck is going, which enables us to identify areas that benefit from strong tailwinds and lend on high-quality assets that we believe will hold their value over time. While this cycle has been impacted by higher rates and secular challenges in some sectors, it’s no surprise that our favored sectors have performed well, as fundamental performance has remained strong and sponsors see the elements of a recovery take shape. The benefits of this strategy and our active approach to asset management have led to stable performance in our portfolio over the past few years.

What’s the one thing you wish you knew coming into 2025 that you know now?

2025 proved to be a record year for BREDS, marked by the successful close of an $8 billion fundraise. Recognizing early in the year that real estate values had so far bottomed and that liquidity was returning to the market, the team seized the opportunity to invest across multiple avenues, resulting in cumulative transaction activity across the business of nearly $36 billion worldwide over the last 12 months.

Lighting Round:

“The Summer I Turned Pretty” or “The Morning Show”?

Are these television programs?

Biggest moment of 2025: TSwift’s engagement or Fed rate cuts?

Rate cuts. While I am thrilled that an American icon has found true love, monetary policy is, on balance, more impactful. 

Data centers: Been there done that, or Gimme more?

Discipline and expertise in the sector are key, but digital infrastructure is at the center of a transformational technological revolution still in its early stages. So, “Gimme more.”

How do you shake off market stress?

Fishing, hunting, reading.

NFL or college football?

College. Go Knights! 

What song would be the theme tune of your life?

It changes all the time, but I always come back to Joan Baez singing anything written by Bob Dylan.

Ultimate dinner party: Pick three guests (dead or alive)?

Nelson, Wellington and Napoleon aboard the HMS Victory.

Thanksgiving: Are you the chef or spectator/ taster?

Football spectator, food taster.

Holiday wish?

That my son enjoys a magical first Christmas.