Monday, January 23, 2012
It's Good To Be King
I just saw this Bloomberg article about Blackstone receiving $6 billion in commitments (on its way to $10 billion) for its latest real estate fund, Blackstone Real Estate Partners VII, which will focus on distressed real estate. The $6 billion is not far from the total amount that non-traded REIT sponsors raised in all of 2011.
Subscribe to:
Post Comments (Atom)
2 comments:
I wonder what the fees are for that fund?
Likely dramatically lower than non-traded REITs. I would guess a 2% asset mgt fee, possibly on total commitments not actual cash which would push up the fee until all cash is called, plus a 20% carried interest. Small O&O and marketing, if at all, and no acquisition or finance fees. The AM fee probably drops after the (5-yr?) commitment period. A true institutional product where Blackstone is going to make its money on the carry, not upfront fees.
Post a Comment