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Blackstone Sets $5B Target for Latest Debt Fund

New York-based Blackstone Group LP is reportedly targeting a $5-billion capital raise for Blackstone Real Estate Debt Strategies IV. The latest real estate debt fund is being set up for public and private debt globally, with an emphasis on the U.S.

The private equity firm sees sustained interest in private real estate debt that’s being driven by a quest for yield by investors. That strategy is supported by the allocations to real estate debt by funds, which totaled $26 billion in 2018 and $33 billion in 2017. Preqin estimates that roughly 40% of assets in real estate debt vehicles have yet to be invested.

Blackstone’s predecessor pool, Blackstone Real Estate Debt Strategies III, raised roughly $4.8 billion in 2016, though it had targeted an initial $4 billion raise. The fund provides mezzanine debt for institutional-grade real estate in North America and Europe. Blackstone has some $140 billion in AUM.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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