Wednesday, November 30, 2022

Blackstone’s $280 billion real-estate team is buying everything from warehouses to campus housing to biotech lab space. Here’s a look at its power players.

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Introducing Blackstone’s Power Players

investment giant black Stone is buying real estate at a rapid pace.

Just last week, it raised $13 billion bets on student housing with a deal to buy American Campus Communities. In the past few months, it acquired Crown Resorts of Australia for $6.3 billion, and reinvested in its European logistics real-estate company.

It’s working. Blackstone broke its earnings record earlier this year, largely thanks to its booming real estate business.

Insider set out to identify the key people grabbing the land, and landed on 17 executives focused on everything from investing in life-sciences office buildings to Hollywood studios to multi-family apartment buildings.

Here, Hana Alberts, one of the story’s editors, gives us a look at the work that went into making this list.

What inspired you to make this list?

On a recent investor call where Blackstone has reported record earnings, executives like John Gray and Stephen Schwarzman pointed them to the firm’s real-estate business. We wanted to identify the influential people leading the division, the largest arm of the private-equity giant, with $280 billion under management out of $915 billion in assets.

Did any of these power players actually stand out to you?

I was intrigued by how Nadeem Meghji, head of real estate for America, prompted Blackstone to acquire a 49% stake in a conglomerate of Hollywood studios in June 2020 after the pandemic threw the economy for a loop. Was.

I am also amazed at how much these people can achieve at such a young age. Katherine Keenan became CEO of Blackstone’s Mortgage Realty Trust at age 36, and David Levine, 33, has been involved in $100 billion transactions since 2010 and is now co-head of Acquisitions of America.

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What trends are they tracking this year?

These leaders are investing in different types of real estate in South Florida right now, from apartment complexes to college-campus housing. Other hot areas include warehouses (thank you, ecommerce and next-day delivery!) and biotech lab space — but there’s a significant lack of investment in major office complexes, which is another sign of the times.

Read the whole story here:

  • 17 Power Players Who Built Blackstone’s $280 Billion Real-Estate Empire

Read also:

  • Blackstone’s Jonathan Gray doubles down on logistics and rental housing as real estate sector that will overtake inflation

The Rise of “Zoomtown”

Blackstone'S $280 Billion Real-Estate Team Is Buying Everything From Warehouses To Campus Housing To Biotech Lab Space.  Here'S A Look At Its Power Players.
iStock; Rebecca Zisser / Insider

Zoomtown, a handful previously overlooked in the South and Mountain West, has boomed in recent years with an influx of remote-working outsiders. Big city transplants are flooding the big city with paychecks – and longtime locals are feeling the squeeze.

Not only are residents being kept away from buying homes, but the rate of displacement is accelerating: some are being forced to leave their hometowns in search of more affordable housing, or in some cases, replace their homes altogether. Kind of lost.

Read the whole story here:

  • Welcome to America’s new ‘Zoomtown’, where an invasion of big city-paying remote workers has long been driving locals to tent cities and homeless shelters.

Amazon’s physical store business is struggling to grow

Blackstone'S $280 Billion Real-Estate Team Is Buying Everything From Warehouses To Campus Housing To Biotech Lab Space.  Here'S A Look At Its Power Players.
Amazon; Mike Blake/Reuters; Henry Nichols/Reuters; Leon Neal/Getty; savanna distance

Amazon’s estimate of opening 280 new stores in the US by 2022 has been badly hit, with only 27 new stores open so far. The company’s struggle to reach its new store-expansion goals is emblematic of the challenges facing the physical-retail sector.

Whereas heroine It’s perfected the art of e-commerce efficiency, facing a much tougher reality in the brick-and-mortar space, fueled by the high costs of stores, a dysfunctional internal culture, and tensions with Whole Foods. Some employees question whether the company will ever excel in the offline-shopping space.

Read the whole story here:

  • Inside Amazon’s growing brick-and-mortar ambitions: Missed estimates, pressure to cut costs, and the war with Whole Foods
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Read also:

  • Leaked Amazon Audio shows CEO Andy Jesse addresses many of the company’s most pressing issues — but dodges employees’ top concerns about low pay

Lagging behind peers, ExodusPoint is poised to be boringly reliable

Blackstone'S $280 Billion Real-Estate Team Is Buying Everything From Warehouses To Campus Housing To Biotech Lab Space.  Here'S A Look At Its Power Players.
escape point; Millennium; Point 72; stronghold; iStock Photos; Vicky Letta/Insider

In 2018, ExodusPoint started with $8.5 billion, making it the largest hedge-fund launch in history. Four years later, the fund can be called both a success and a work in progress.

By a number of measures, including its ability to raise and grow funds, it has proved to be a resounding success. It manages $13.5 billion with offices around the world and a head count close to 700. But to the extent that a startup fund can have about $14 billion in assets in four years that it can have direct counterparts, it lags behind both them and the market.

Read the whole story here:

  • How ExodusPoint — the largest hedge-fund launch in history — continues to collect billions despite weak returns and criticisms of Michael Gelband’s management style

More of this week’s top reads:

  • JPMorgan is tracking office attendance — and some employees are threatening to quit.
  • Insiders blame Jeff Zucker and Jason Keeler for Nation World News+’s rapid demise.
  • The former senior TikTok employee said he has experienced a ‘996’ culture of overwork and privacy.
  • Highly paid LinkedIn ghostwriters are helping execs become influential.
  • Here’s how Medable, the healthcare startup backed by Blackstone and Tiger Global, raised $304 million.
  • DoorDash has substantially changed the way it compensates employees in stock.
  • A leaked investor presentation reveals that alternative-protein startup Eat Just has slashed its 2021 revenue forecast by nearly 50%.

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Curated by Matt Turner. Edited by Jordan Parker Erb and Lisa Ryan. Sign up here for more Insider newsletters.


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