Blackstone raises $8bn for private equity fund promising longer term investment

Blackstone Group’s private equity business raised $8 billion for a fund that aims to hold companies for longer periods than its typical investments.

The firm’s second core private equity fund will be more than 70 per cent larger than its first, which closed in 2016. Investments will focus on essential business services and companies with compelling intellectual property or content, Joe Baratta, Blackstone’s global head of private equity, said in an interview. The group’s previous long-term fund made investments that included music rights company SESAC Holdings and Servpro Industries, a provider of cleaning and emergency restoration services.

“These are businesses that have really clear and transparent operating models,” Mr Baratta said. “Here we’re deploying capital for a decade plus. That’s attractive and more cost efficient for large investors.”

US economy may see V-shaped recovery as liquidity and vaccine optimism underpin markets' rebound, Blackstone's CEO says

Private equity funds raised more money in 2019 but only offer returns similar to equities

Blackstone, the world’s largest alternative asset manager, has remained a fundraising machine even amid the uncertainty caused by the Covid-19 pandemic.

It brought in $47.6bn during the first half of the year, after a record $134.4bn haul for all of 2019. The private equity industry bills itself as a safe custodian of investor cash in volatile times, pointing to its strength in the wake of the 2008 financial crisis.

Managers were stung by hefty losses early this year but their performance has largely rebounded along with the broader market. All Blackstone segments posted gains in the second quarter, led by a 12.8 per cent advance for private equity funds. The New York-based firm is scheduled to report third-quarter results on Wednesday.

UAE currency: the story behind the money in your pockets

SQUADS

UAE
Mohammed Naveed (captain), Mohamed Usman (vice-captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan

Nepal
Paras Khadka (captain), Gyanendra Malla, Dipendra Singh Airee, Pradeep Airee, Binod Bhandari, Avinash Bohara, Sundeep Jora, Sompal Kami, Karan KC, Rohit Paudel, Sandeep Lamichhane, Lalit Rajbanshi, Basant Regmi, Pawan Sarraf, Bhim Sharki, Aarif Sheikh

Sri Lanka-India Test series schedule

1st Test July 26-30 in Galle

2nd Test August 3-7 in Colombo

3rd Test August 12-16 in Pallekele

THREE POSSIBLE REPLACEMENTS

Khalfan Mubarak
The Al Jazira playmaker has for some time been tipped for stardom within UAE football, with Quique Sanchez Flores, his former manager at Al Ahli, once labelling him a “genius”. He was only 17. Now 23, Mubarak has developed into a crafty supplier of chances, evidenced by his seven assists in six league matches this season. Still to display his class at international level, though.

Rayan Yaslam
The Al Ain attacking midfielder has become a regular starter for his club in the past 15 months. Yaslam, 23, is a tidy and intelligent player, technically proficient with an eye for opening up defences. Developed while alongside Abdulrahman in the Al Ain first-team and has progressed well since manager Zoran Mamic’s arrival. However, made his UAE debut only last December.

Ismail Matar
The Al Wahda forward is revered by teammates and a key contributor to the squad. At 35, his best days are behind him, but Matar is incredibly experienced and an example to his colleagues. His ability to cope with tournament football is a concern, though, despite Matar beginning the season well. Not a like-for-like replacement, although the system could be adjusted to suit.

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.