Blackstone Integrates Leading Credit and Insurance Businesses to Form Blackstone Credit and Insurance (BXCI) in Push Toward Next $1 Trillion

Blackstone (NYSE: BX) announced today the integration of its market-leading corporate credit, asset-based finance, and insurance groups into a single new unit, Blackstone Credit & Insurance (BXCI). Credit and Insurance is Blackstone’s fastest-growing segment – more than doubling to $295 billion in assets under management over the last three years. Today, Blackstone’s market-leading businesses include: the largest BDC (BCRED), largest private credit energy transition fund (BGREEN), largest manager of CLOs and senior loans in the world, and the second-largest alternative manager of insurance assets.

The new structure will further accelerate growth by creating a more seamless experience for clients and borrowers. BXCI will offer a one-stop solution across corporate and asset-based, as well as investment grade and non-investment grade, private credit.

Steve Schwarzman, Co-Founder, Chairman and CEO of Blackstone said: “We see the opportunity for BXCI, along with Real Estate Credit, to reach $1 trillion in the next ten years.”

Jon Gray, President & COO of Blackstone, said: “Exceptional demand from our clients has made Credit and Insurance the fastest-growing segment at Blackstone. This integration allows us to be an even more effective lender and more comprehensively serve our insurance, pension fund and private wealth clients.”

Gilles Dellaert, Global Head of Blackstone Insurance, will serve as Global Head of BXCI and lead the business’s combined operations. Since Mr. Dellaert joined the firm in 2020, Blackstone has nearly tripled the assets it manages for insurance clients. Major new partnerships include Corebridge (f/k/a AIG Life & Retirement), Everlake (f/k/a Allstate Life & Retirement) and Resolution Life in addition to F&G Annuities & Life.

Dwight Scott, Global Head of Blackstone Credit, will serve as Chairman of BXCI, prioritizing client relationships, key growth initiatives, and the further expansion of the firm’s European platform. Mr. Scott is a nearly 20-year veteran of Blackstone who has built a world-class credit business with market-leading positions in direct lending, energy transition, and leveraged loans and CLOs, amongst others.

Gilles Dellaert said: “I am excited to take on this new role and believe that there is immense white space to continue expanding our leading credit and insurance platforms. Bringing together nearly all of the firm’s credit activities further extends the competitive advantage of Blackstone’s scale, private origination capabilities, and intellectual capital – helping us better serve our clients.” 

Dwight Scott added: “The combined BXCI team will deliver the best of Blackstone to our investors and borrowers. We believe we are still in the early innings of a megatrend in private credit. Particularly in today’s elevated base rate environment – and given the senior-secured structure of many of our products – we believe it is currently the best risk-adjusted environment for this asset class in decades.”

Mr. Dellaert and Mr. Scott will be supported by long-tenured heads of our investment businesses who will be taking on expanded roles in BXCI including:

  • Michael Zawadzki, Global Chief Investment Officer
  • Brad Marshall, Global Head of Private Credit Strategies
  • Rob Horn, Global Head of Sustainable and Structured Credit
  • Rob Camacho, Global Head of Asset Based Finance
  • Rob Zable, Global Head of Liquid Credit Strategies

The combined group will also draw upon strong operational leaders including:

  • Heather von Zuben, Co-Chief Operating Officer
  • Ida Hoghooghi, Co-Chief Operating Officer
  • Will Skinner, Chief Financial Officer
  • Beth Chartoff, Global Head, Credit Institutional Client Solutions

Jonathan Pollack will continue to lead Blackstone’s $67 billion Real Estate Credit business as Global Head of Real Estate Credit.

About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $1 trillion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. 

Source link:

Newsletter Updates

Enter your email address below and subscribe to our newsletter