(Oct 29): Blackstone Inc amassed about US$22 billion (RM96.21 billion) of capital, including anticipated leverage, for a new direct lending fund targeting institutional investors, according to a statement seen by Bloomberg.

The structure of the fund is essentially a hybrid between drawdown funds, where investors agree to lock up capital for a certain number of years, and traditional evergreen funds, which have no set maturity but let investors buy in and out periodically. The fund is focused on lending in large-cap and middle-market transactions, according to the statement.

The firm’s best-known direct lending strategy is its US$62 billion Blackstone Private Credit Fund, or BCRED, which is a business development company that targets retail investors. Blackstone’s credit business also invests the money of insurance companies and institutional asset managers, such as pensions and sovereign wealth funds.

Private credit lenders have been racing to amass larger sums of money to stay competitive and write bigger checks for individual deals. Ares Management Corp recently hauled in roughly US$34 billion for its latest direct lending fund and Goldman Sachs Group Inc boosted this year’s goal for alternative fundraising by 20% on the promise of surging demand in credit markets.

Blackstone’s latest fundraise has brought the firm’s global direct lending platform to more than US$123 billion as of the third quarter. That’s part of the US$432 billion of assets under management across Blackstone’s entire credit platform through Sept 30, according to its website. 

Uploaded by Arion Yeow