OK . . but do read more [the valuations are now in question]
Before the coronavirus crisis, private equity made a big bet on logistics facilities.
By Noah Buhayar
@NBuhayarMore stories by Noah Buhayar
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"Venture capital (VC), another part of the private universe, is feverish. SoftBank’s Vision Fund, a $100bn private-capital vehicle backed by Saudi Arabia’s sovereign-wealth fund, has funnelled cash into fashionable, unlisted startups. Other institutions have vied with it to write big cheques for Silicon Valley’s brightest new stars.
Already some of these bets have gone awry. . .
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Asset Management: PRIVATE CAPITAL/PRIVATE DEBT MARKETS > Buy-Outs & Property
"Worldwide, pools of private capital, including private equity and private debt, as well as unlisted real-estate and hedge-fund assets, grew by 44% in the five years to the end of 2019, . . . A different way to capture the scale of the private party is to look at the quartet of Wall Street firms that specialise in managing private investments for clients — Apollo, Blackstone, Carlyle and KKR.
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BLOGGER NOTE: What appears in this post are selected snippets taken from
ENTRY: into more productive “sunrise” firms.
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"Their total managed assets have risen by 76% in the past five years, to $1.3trn.
They have long specialised in buy-outs and property.
More recently they have grown in private-debt markets, too—in total their funds’ credit holdings have hit $470bn
MORE > https://mesazona.blogspot.com/2020/02
_________________________________________________________________BLOGGER INSERT: They sure did
Here's an earlier post from this blog
MesaZona > Table of Contents : Here's The Menu. Enjoy
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CAUTION INSERT 1
"Venture capital (VC), another part of the private universe, is feverish. SoftBank’s Vision Fund, a $100bn private-capital vehicle backed by Saudi Arabia’s sovereign-wealth fund, has funnelled cash into fashionable, unlisted startups. Other institutions have vied with it to write big cheques for Silicon Valley’s brightest new stars.
Already some of these bets have gone awry. . .
"The flood of capital into private markets ultimately rests on the belief that they will outperform public ones. There is evidence for this—in the past the best-run private-capital managers have beaten the returns from public markets, even after generous fees. And there are grounds to believe that this was no statistical fluke. Private capital, say its boosters, reduces “agency costs”. These arise wherever somebody (the principal) delegates a task to somebody else (the agent) and their interests conflict. Consider the public markets—no one has a big enough stake to make it worthwhile to monitor firms, which as a result get complacent or indulge in short-term earnings management to the detriment of the long term. Private capital, which is closely held in a few hands, is supposed to get around such agency problems.
Yet every investment craze is liable to overreach, blindness to risk and misallocated capital. Recent converts to the private world, dazzled by the historical returns, may not fully appreciate the hazards . . "
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Asset Management: PRIVATE CAPITAL/PRIVATE DEBT MARKETS > Buy-Outs & Property
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BLOGGER NOTE: What appears in this post are selected snippets taken from
Everyone now believes that private markets are better than public ones
EXIT: from low-productivity “sunset” firms ENTRY: into more productive “sunrise” firms.
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"Their total managed assets have risen by 76% in the past five years, to $1.3trn.
They have long specialised in buy-outs and property.
More recently they have grown in private-debt markets, too—in total their funds’ credit holdings have hit $470bn
MORE > https://mesazona.blogspot.com/2020/02
Here's an earlier post from this blog
MesaZona > Table of Contents : Here's The Menu. Enjoy
03 June 2019
Word-of-the-Day = Logistics
Press Release Jun 02, 2019 https://www.blackstone.com/media
Blackstone to Buy U.S. Logistics Assets from GLP for $18.7 Billion
Deal will be the largest-ever private real estate transaction globally
Singapore and New York – GLP and Blackstone today announced that they have entered into an agreement for Blackstone to acquire assets from three of GLP’s U.S. funds for a purchase price of $18.7 billion.
__________________________________________________________Blackstone Bets on E-Commerce With $18.7 Billion Logistics Deal
By Peter Vercoe
Updated on
In context from https://www.bloomberg.com/news
By Peter Vercoe
Updated on
In context from https://www.bloomberg.com/news
Blackstone Group LP is doubling down on the future of online shopping, agreeing to buy $18.7 billion of U.S. logistics assets from Singapore’s GLP Pte in what it says is the world’s biggest private-equity real estate deal.Blackstone will gain 179 million square feet of warehouse assets, greatly expanding the size of its U.S. industrial footprint, the New York-based company said in a statement late Sunday
This overall transaction totals 179 million square feet of urban, infill logistics assets, nearly doubling the size of Blackstone’s existing U.S. industrial footprint.
Blackstone Real Estate’s global opportunistic BREP strategy will acquire 115 million square feet for $13.4 billion and its income-oriented non-listed REIT, Blackstone Real Estate Income Trust (BREIT), will acquire 64 million square feet for $5.3 billion.
Ken Caplan, Global Co-Head of Blackstone Real Estate, commented: “Logistics is our highest conviction global investment theme today, and we look forward to building on our existing portfolio to meet the growing e-commerce demand. Our global scale and ability to leverage differentiated investment strategies allowed us to provide a one-stop solution for GLP’s high quality portfolio.”
Alan Yang, Chief Investment Officer of GLP, said: “GLP was able to leverage our deep operating expertise and global insights in the logistics sector within four years to build and grow an exceptional portfolio. We are proud of the business our team built and are confident it will continue to flourish under Blackstone’s leadership. We are looking forward to expanding our footprint in the United States to continue to seize key opportunities in the U.S. market.”
