Blackstone has raised approximately $1bn for a private credit continuation vehicle, according to Private Equity Wire. The vehicle enables existing investors to exit while Blackstone retains exposure to the underlying loan portfolio, according to Private Equity Wire.
Buyer group and roles
The report cited by Private Equity Wire attributes the information to a Bloomberg report that referenced unnamed people familiar with the matter, according to Private Equity Wire. Allianz Global Investors is the lead buyer in the transaction, alongside StepStone Group, according to the report referenced by Private Equity Wire.
Blackstone and Allianz reportedly declined to comment, according to Private Equity Wire. Evercore and StepStone reportedly did not respond to requests for comment, according to Private Equity Wire.
Asset source and fund background
The continuation vehicle holds assets from Blackstone Capital Opportunities Fund IV, according to Private Equity Wire. Blackstone Capital Opportunities Fund IV completed fundraising in 2022, according to Private Equity Wire.
The original fund delivered a net internal rate of return of 11% as of 30 June, according to Blackstone’s latest financial disclosures cited by Private Equity Wire.
Advisors and loan holdings
Evercore advised Blackstone on the continuation fund transaction, according to Private Equity Wire. Some of the loans involved will remain held by other Blackstone-managed funds, according to Private Equity Wire.
Continuation funds are widely used in private markets to allow some investors to exit positions while a manager maintains exposure through a new vehicle, and Private Equity Wire described this transaction as enabling existing investors to exit while Blackstone retains exposure to the underlying loan portfolio.
