While the Blackstone Group (NYSE: BX) is primarily known as a private equity firm, this actually understates things. In fact, it is a diverse global platform that spans hedge funds, corporate advisory and real estate investments.
Actually, the real estate segment is getting bigger. This week Blackstone announced that it raised a $4.3 billion real estate fund with the main focus on opportunities in Europe. It's called the Blackstone Real Estate Partners Europe III fund (for whatever reason, these funds can be a mouthful).
True, Europe has been mired in a recession (hey, who hasn't?). But then again, Blackstone has a good sense of market cycles and will take the long view. So, this move is certainly a positive -- indicating that there is hope of an eventual comeback (and that big-money investors are willing to make a bet on it).
However, don't expect a rush of deals. For the most part, Blackstone has the luxury of biding its time to find the right transactions. Besides, there are many European banks that need to shore up their capital, which means unloading properties, presenting even more chances for strong returns.
And where might the best opportunities be? According to Blackstone, it looks like the focus will be on the U.K. and Germany.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
