Blackstone is intensifying its focus on international credit opportunities, and is aiming to grow its portfolio to include a wider range of debt, including local-currency investments, according to a report by Bloomberg quoting the company’s Global Head of Credit & Insurance, Gilles Dellaert.
Speaking during an interview in Tokyo, Dellaert said: “We see substantial growth potential in Europe and Asia. Our goal is to ensure we achieve the same scale and diversity globally as we have in the US.”
Blackstone is targeting the private investment-grade credit market, which includes asset-backed financing beyond corporate debt, and is estimated to be worth between $25tn and $50tn. The world’s largest alternative asset manager has been expanding its debt business as investors seek the higher yields and spreads available in the burgeoning $1.7 tn private credit market.
By the end of June, Blackstone’s credit and insurance business managed around $330bn in assets. The segment delivered the firm’s largest gains in the second quarter, with fee earnings up 29% and profits available to shareholders surging 51%, driven by higher capital inflows and successful investments.
In April, Blackstone announced the hiring of Dan Leiter, Morgan Stanley’s former Global Head of Securitised Products Trading, to lead its international credit and insurance division. The firm’s global direct lending business currently totals about $120bn, with ambitions to develop a $5bn lending platform in Asia. Since 2022, Blackstone has deployed approximately $1bn annually to the region.
While private credit initially focused on financing highly leveraged companies, Blackstone is now lending to over 2,000 non-investment-grade borrowers. Competitors like Apollo Global Management and Carlyle Group are also moving into investment-grade debt, recognising the lucrative potential.
