Putting away a little cash, Blackstone raises $10B for opportunistic credit fund

Blackstone Inc. raised $10 billion for its latest opportunistic credit fund, the company said Tuesday.

Blackstone Capital Opportunities Fund V was oversubscribed and closed at its hard cap, marking the firm’s largest-ever haul for opportunistic credit. The fund will include both performing investments and opportunistic ones, with the latter targeting assets that may be undervalued.

The $1.8 trillion private credit market has faced scrutiny in recent months over its exposure to the software industry, which faces challenges from advances in artificial intelligence. Sell-offs in software firms have affected retail investors, and several private credit funds catering to individuals have enforced redemption limits of 5% of total shares.

Blackstone manages $520 billion of assets across corporate and real estate credit. Its flagship private credit vehicle received a record number of redemptions this year, prompting some of the firm’s senior leaders to contribute their own money to meet roughly $3.8 billion of requests.