Blackstone attracted $5.2 billion of capital for its fourth fund in its tactical opportunities business that seeks private investment plays outside of traditional private equity and private credit.
Blackstone Tactical Opportunities Fund IV — along with other single-investor vehicles pursuing the same strategy — is expected to have nearly $10 billion of new capital in the platform’s fourth fundraising vintage. The fundraise exceeds that of Blackstone Tactical Opportunities Fund III, which raised $4.2 billion for the flagship fund for a total of $8.7 billion including single-investor vehicles.
Investors in the latest fund include the State of Wisconsin Investment Board, which made its commitment to the fund in late 2022.
“We are grateful for this strong vote of confidence from our investors, whose continued support is a testament to our team’s ability to identify compelling opportunities amid fast-changing market conditions,” said David Blitzer, Blackstone’s global head of Tactical Opportunities. “Our expertise in nimbly deploying capital on a global basis, unconstrained by asset class, industry or geography, allows us to deliver tailored solutions to exceptional businesses and strong results for our investors.”
Fund IV has already made some key investments including CoreWeave, which attracted $2.3 billion in debt financing led by Blackstone’s Tactical Opportunities platform and Magnetar earlier this month. Other investments include New Tradition, an out-of-home media business that operates advertising assets nationwide such as One Times Square in New York City and The Reef in Los Angeles.
“We created the Tactical Opportunities platform more than a decade ago to shine in periods of dislocation like we’ve seen recently,” said Christopher James, chief operating officer of Tactical Opportunities. “We believe our scale, flexible capital and thematic investing focus positions us well to capitalize on the compelling opportunity set ahead.”
The platform, which launched in 2012, now totals $34 billion in assets. The aim has been to invest globally across asset classes, industries and geographies. The team carries deep sector expertise that is also able to harness the scale and intellectual capital across Blackstone’s various businesses.
The fundraise comes as the firm topped $1 trillion for the first time and its assets remain two to three times larger than its mega alternative investment firm peers, some of which are publicly traded.