Capital watch: Blackstone, Cheyne gear up debt offering

As of the start of 2024, debt funds made up roughly 20% of all funds in market by strategy, up for the second year in a row.

New York-based Blackstone Group and London-based Cheyne Capital Management are each raising dedicated debt vehicles, which feature among the top 10 private real estate funds in market as of January 11, according to data from affiliate title PERE.

Blackstone is seeking about $8 billion for Blackstone Real Estate Debt Strategies V, a multi-jurisdictional fund; Cheyne Capital has set a target of $6.3 billion for its European-focused Cheyne Real Estate Holdings Fund VIII. Blackstone has so far raised $3.7 billion, with details from Cheyne not available.

As of the start of 2024, debt funds made up roughly 20 percent of all funds in market by strategy, up from 16 percent in 2023 and 19 percent in 2022. Value-added and opportunistic strategies rounded out the three largest areas in which managers are raising capital.

The amount of capital targeted for private real estate vehicles globally has risen over the past year, with the amount of capital increasing from $297.7 billion at the start of 2023 to $417 billion one year later.