Blackstone aims to invest $500 billion in Europe

Blackstone is betting on Europe. The alternative asset giant plans to invest up to $500 billion in the European market over the next 10 years, reflecting the continent's growing attractiveness to investors at a time of geopolitical turmoil.

"We see it as a great opportunity for us," said CEO Steve Schwarzman in an interview with Bloomberg Television, continuing, "They are starting to change their approach, and we think that will translate into higher growth rates. Conditions that work incredibly well for us.

Schwarzman's comments, marking the 25th anniversary of the alternative asset manager's operations in London, are the latest sign that investment firms are considering moving capital to Europe. At last week's SuperReturn International conference in Berlin, executives from giants such as BC Partners, Permira and Brookfield Asset Management emphasised the opportunity to invest in Europe in the face of rising global economic risks.

Schwarzman, for his part, pointed out that Europe represents a 'great opportunity' for the world's largest alternative asset manager, which manages assets worth more than one trillion dollars. Among the stimuli for the economy, the closed-end funds include the intention to increase defence spending. This is an important shift considering that since 2020, the US and Canada have attracted 83% of all private equity and venture capital investment in the aerospace and defence industries, according to S&P. Funds are now looking for European companies that can benefit from increased government investment on this front. The region will also benefit from the spending plans launched by Germany, the area's leading economy, which is expected to drive GDP growth in other nations on the continent, including Italy.

In 2000 when Blackstone opened its London office (the firm's only other office besides New York), it had raised more than $13 billion for alternative funds. Today it is the world's largest alternative asset manager, with over $1 trillion in assets under management and offices in 27 cities around the world. Not only that. According to the industry group Inrev, it is the largest real estate fund manager in Europe. The firm's London office, which will move to a new building currently under construction in Berkeley Square in the Mayfair district, currently employs 650 people, Schwarzman said.