Blackstone (NYSE:BX) is likely preparing for the launch of a private equity fund for affluent individuals, following months of delays in its plans. As per the Financial Times, the company is expected to begin accepting investor commitments for the Blackstone Private Equity Strategies Fund, or BXPE, in the fourth quarter.
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In addition, BX is anticipated to charge no fees for the first six months. Following this period, investors can anticipate a management fee of 1.25% of assets along with a 12.5% performance fee above a 5% annual hurdle rate. Moreover, no dedicated team will be assigned to BXPE but will be led by executives of Blackstone’s tactical opportunities business, Christopher James and Todd Hirsch.
The delay in Blackstone’s plans to launch the private equity offering came after it was forced to limit the redemptions of its Blackstone Real Estate Income Trust (BREIT) last year. The key reason behind this was concerns over commercial property valuations, which caused panic among investors.
Is BX a Good Stock to Buy?
Blackstone, with its assets under management exceeding $1 trillion, has a history of delivering impressive returns to its investors. However, Wall Street analysts remain cautiously optimistic about the stock due to concerns about rising debt costs and the resulting challenging market conditions.
BX stock has a Moderate Buy consensus rating based on 11 Buys and four Hold ratings assigned in the past three months. Meanwhile, analysts’ average price target of $115.62, implies a 15.97% upside potential. So far in 2023, the stock is up about 34%.
Investors looking for the most accurate analyst covering BX stock could follow analyst Craig Siegenthaler from Bank of America Securities. If one were to replicate the analyst’s trades on Blackstone and hold each position for one year, about 85% of the transactions would result in a profit, with an average return of 24.23%.
