TLDR
- Blackstone is launching a publicly available investment platform focused on AI data center infrastructure with ambitions reaching into the billions
- The company is targeting sovereign wealth funds and institutional investors for initial capital commitments
- Blackstone and Brookfield have each presented bids worth at least €8 billion for Volkswagen’s Everllence SE, a heavy-duty engine manufacturer
- Blackstone Life Sciences has entered a co-funding agreement with Johnson & Johnson to advance bleximenib, a potential treatment for acute myeloid leukemia
- RBC Capital initiated coverage on February 23 with an Outperform rating and $179 price target
The alternative asset management titan is gearing up to launch a new publicly traded investment platform exclusively targeting AI data center properties. This venture seeks to make AI infrastructure investments accessible to a broader range of investors — a space where Blackstone aims to establish market dominance.
The company’s first priority involves locking in commitments from sovereign wealth funds and leading institutional investors. Once this groundwork is established, Blackstone plans to open the doors to tens of billions in additional capital from a more diverse investor base.
The approach shows considerable boldness. Yet some observers remain cautious about the timing.
Several market analysts have raised concerns about whether large-scale AI training facilities built in isolated areas could become outdated as technology evolves. Blackstone seems ready to confront these concerns head-on.
This venture forms part of a broader push to diversify beyond traditional pension fund and endowment relationships. Retail investors have become a crucial component of the firm’s growth strategy.
Volkswagen Unit Bid
On the dealmaking front, Blackstone and Brookfield Asset Management (NYSE: BAM) have both submitted bids surpassing €8 billion ($9.4 billion) to acquire Volkswagen’s Everllence SE business.
Everllence produces marine engines and industrial power turbines. Volkswagen has been looking to sell this unit as part of a wider organizational streamlining and profitability improvement effort.
Other bidders in the running include Advent International, Bain Capital, EQT AB, and CVC Capital Partners — all of whom have advanced to the next round of bidding.
A final deal is far from guaranteed. Bloomberg reports suggest discussions are ongoing with no definitive outcome yet.
Biotech and Analyst Coverage
On February 23, Blackstone Life Sciences announced a joint funding arrangement with Johnson & Johnson to advance the development of bleximenib, an investigational oral therapy for acute myeloid leukemia.
AML is the most common form of acute leukemia in adults and carries the worst prognosis among all leukemia types. Management described this disease as presenting extraordinary treatment difficulties.
This represents the first co-funding collaboration between BXLS and Johnson & Johnson, marking an important development for Blackstone’s life sciences investment arm.
Meanwhile, RBC Capital initiated coverage of Blackstone with an Outperform rating and $179 price target.
RBC told clients that Blackstone has a “first-mover advantage” as the first alternatives manager to build a dedicated private wealth distribution platform. The firm views Blackstone as well-positioned to benefit from growing retail investor access and improving commercial real estate fundamentals.
Blackstone operates across four main business lines: Real Estate, Private Equity, Credit and Insurance, and Hedge Fund Solutions.
BX shares fell 3.88% on February 27, the same day news broke about the AI data center platform and Volkswagen bidding competition.
