Blackstone holds interim close on long-term fund

Blackstone Core Equity Partners, which is meant to hold investments for longer than the typical 3-5 years in private equity, has raised $2.6bn.

Blackstone has raised more than $2 billion for its long-term fund, Blackstone Core Equity Partners, according to two regulatory filings.

In a 22 June filing with the US Securities and Exchange Commission, Blackstone indicated it raised $1.58 billion through five investors, with assistant from Korean firm NH Investment & Securities.

In a separate filing from 16 June for a vehicle named Blackstone Core Equity Partners – P, the firm indicated it raised $1 billion through one investors, without any specified placement agent.

Targeting $5 billion, the long-term fund will certainly close beyond that amount, according to Blackstone president and chief operating officer Tony James, who spoke during the firm’s first-quarter earnings call in April, as reported by Private Equity International.

Blackstone plans to invest the fund in a shorter time frame than a more traditional private equity fund, and to return faster to market to raise further capital for the same fund. It marketed this vehicle to large family offices, primarily in Europe, and has garnered interest from large pension funds with a long-term view that want to match their longer liability positions.

Several of Blackstone’s competitors are also raising longer-term private equity funds to invest in more established businesses. Carlyle had secured $3 billion for its Carlyle Global Partners as of February when it released its fourth-quarter earnings.

A Blackstone spokeswoman was not available to comment.