Blackstone Inc. has 315.4 billion USDs of its 1.127 billion trillion USDs under management invested in real estate.
Real estate is one of the main value drivers for Blackstone, according to Wolfteam Ltd.'s projections and estimate. Blackstone has a similar structure to other alternative investment management firms with private equity the leading profit engine for the largest private equity, real estate and private credit management firms like KKR, Apollo, Carlyle, Ares, Blue Owl etc.
Naturally, it follows that Blackstone's real estate investments hold a lot of unlocked value for the firm. Large part of Blackstone's real estate investments are in artificial intelligence related infrastructure like data centers, delivery centers, logistics property centers etc. So Blackstone's real estate investments business is in its own way a technology play on artificial intelligence, AI.
What is more, Blackstone's real estate investment business has huge scale already, which enables Blackstone to earn excess returns from real estate, even above the Standard and Poor's 500 annual average return. Blackstone's so called perpetual capital is 444.8 billion USD. The perpetual capital are insurance premium fees gathered from Blackstone's proprietary insurance business lines. Due to their nature such insurance premiums are available for long-term investing, often for more than 10 years.
Large part of this perpetual capital flows into Blackstone's real estate investments business, which helps Blackstone achieve superior return from real estate investing.
All said, Blackstone's real estate business is a real growth drive for Blackstone, also in the future and holds tens of billions of USDs of unlocked value, in Wolfteam Ltd.'s view.
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