Inside Blackstone Inc., plans are afoot to develop its first private equity fund targeting such individuals as part of a project codenamed “BXPE.” The goal: build new war chests that would eventually gather tens of billions of dollars to invest in deals piped in from various Blackstone teams, according to people with familiar of the matter.
The fund would potentially offer multimillionaires exposure to a swath of assets unavailable on public markets, such as Silicon Valley unicorns, closely held corporations and even stakes in other buyout shops, said the people, who asked not to be named because the discussions aren’t public. In contrast with the usual practice of locking up institutional investors’ money for years, customers would have periodic opportunities to withdraw, the people said.
Some Blackstone staff had hoped to design a vehicle for accredited investors with as little as about $1 million in net worth, one of the people said. But that’s not on the table. Going so far downmarket would subject the fund to additional regulations, potentially affecting the collection of carried interest and the extent to which it can make private-equity investments.
Read more: BNN BLoomberg
