Brett Arends’s ROI: Why I don’t have Blackstone REIT envy

by | Jan 5, 2023 | Stock Market

Thanks, but no thanks, on the giant $126 billion Blackstone REIT known as “BREIT.” OK, so early investors have apparently doubled their money in the fund’s first six years, as the private equity giant used their funds to go out and vacuum up thousands of American homes, mostly across the Sunbelt, as well as warehouses and other assets.

Total returns since the January 2017 launch: A stellar 93%, the fund reports. BREIT was even up in 2022, while REITs generally tanked. No wonder the University of California has just plunged $4 billion of its endowment into the fund for the next six. I wish them the best. But I don’t envy the rich and well-connected who get access to these glamorous high-hat funds. Maybe they’ll make out like bandits. Maybe they won’t. But here’s why I’m not green at the gills. 1. I notice that BREIT has been struggling with client redemptions for months. Blackstone actually had to cap the monthly withdrawals to stem the tide. The total amounts withdrawn aren’t …

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