Blackstone raises $4 bln for separate accounts business

The Blackstone Group has raised a total of $4 billion for its tactical opportunities business after collecting an additional $703 million during the quarter, according to the firm’s quarterly earnings report Thursday, and a person with knowledge of the fund.

Blackstone reported in the earnings reported that it has raised a total of $3.7 billion for the business; however, the person said the firm has actually raised more than $4 billion. Blackstone declined to comment.

It’s not clear when the Tactical Opportunities fund will officially close to new investors.

Tactical Opportunities is Blackstone’s separate accounts business that provides individual limited partners customized exposure to investment opportunities across asset classes. The business has both huge mandates with individual LPs like New Jersey’s state pension system, which committed about $750 million to the business, as well as a fund of separate accounts for investors who make smaller commitments.

Earlier this year, Blackstone’s president Tony James lauded Tactical Opportunities: “there is no business … that is as interesting and exciting as Tactical Opportunities,” James said on the firm’s earnings call in April.

The firm also reported holding a second close on its Asian real estate fund, bringing total commitments to $1.8 billion, and an initial close on its latest European real estate fund, with $1.9 billion of total commitments.

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