Author：Wall Street CN

Blackstone Group has raised $10 billion for its latest opportunistic credit fund, highlighting continued enthusiasm among institutional investors amid turmoil in the private credit market. This is Blackstone's largest opportunistic credit fundraising to date.

Blackstone Capital Opportunities Fund V saw overwhelming subscriptions, exceeding its fundraising limit and completing its fundraising. The fund will invest in both operating assets and opportunistic assets, the latter primarily targeting potentially undervalued assets.

In recent months, the $1.8 trillion private lending market has come under intense scrutiny due to its exposure to the software industry—where the rapid development of artificial intelligence poses an existential threat. The decline in software company stock prices has particularly unsettled retail investors, with several private lending funds targeting individual investors setting redemption limits at 5% of their total holdings.

Lou Salvatore, co-portfolio manager of Blackstone Capital Opportunities Fund, stated that raising $10 billion amidst ongoing industry noise demonstrates Blackstone's strength in the credit sector. In recent weeks, private equity executives have emphasized that market volatility has created new opportunities for investors with cash on hand.

In a letter to investors last month, Apollo Global Management stated that complex and uncertain times often breed the most attractive investment opportunities, provided that one has the flexibility to act decisively.

Blackstone manages $520 billion in assets across corporate and real estate lending. Its flagship private lending product faced a record number of redemption requests this year, forcing some of the company's executives to personally cover approximately $3.8 billion in redemption demands.

Blackstone’s previous Capital Opportunities Fund completed fundraising in January 2022, with a final size of $8.75 billion.