TLDR
- Blackstone is launching a new publicly available investment platform focused exclusively on acquiring artificial intelligence data center infrastructure with multi-billion dollar goals
- The firm’s initial fundraising strategy concentrates on attracting commitments from sovereign wealth entities and large institutional investors
- Blackstone and Brookfield have each submitted bids worth at least €8 billion for Volkswagen’s industrial engine business, Everllence SE
- Blackstone Life Sciences has formed a partnership with Johnson & Johnson to finance bleximenib development, a drug candidate for acute myeloid leukemia
- RBC Capital initiated coverage on February 23 with an Outperform rating and established a $179 price target
The alternative asset management giant is set to launch a new publicly traded investment vehicle solely dedicated to artificial intelligence data center properties. This move is designed to provide broader investor access to AI infrastructure — a rapidly growing segment where Blackstone aims to establish market leadership.
The company’s initial fundraising approach centers on obtaining capital commitments from sovereign wealth funds and institutional heavyweights. Once this base is established, Blackstone plans to expand its reach to accumulate tens of billions in additional investment capital from retail and other investors.
The approach reflects bold strategic positioning. Yet questions persist about optimal entry timing.
Some industry observers have raised concerns about whether large-scale AI training facilities built in isolated areas might become outdated as technology evolves rapidly. Blackstone appears confident in navigating these potential challenges.
This venture forms part of Blackstone’s broader push to diversify beyond its traditional institutional client base of pension funds and university endowments. Retail investors have become a critical growth priority for the firm.
Volkswagen Unit Bid
On the mergers and acquisitions front, Blackstone and Brookfield Asset Management (NYSE: BAM) have both submitted offers worth more than €8 billion ($9.4 billion) for Volkswagen’s Everllence SE business unit.
Everllence produces marine engines and power generation turbines for industrial applications. Volkswagen is looking to divest this asset as part of its broader strategic realignment and profitability improvement efforts.
Other firms competing for the asset include Advent International, Bain Capital, EQT AB, and CVC Capital Partners — all of whom have advanced to later rounds of the bidding process.
A final deal is not guaranteed. According to Bloomberg reports citing unnamed sources, discussions are ongoing with no definitive agreement reached.
Biotech and Analyst Coverage
On February 23, Blackstone Life Sciences announced a co-investment arrangement with Johnson & Johnson to advance the development of bleximenib, an investigational oral therapy for acute myeloid leukemia patients.
Acute myeloid leukemia 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-investment deal between BXLS and Johnson & Johnson, marking an important development for Blackstone’s life sciences investment platform.
Meanwhile, RBC Capital initiated coverage on Blackstone with an Outperform rating and set a $179 price target.
RBC told clients that Blackstone holds a “first-mover advantage” as the first alternative asset manager to build a dedicated private wealth distribution infrastructure. The analyst firm views Blackstone as well-positioned to benefit from increased retail participation and improving commercial real estate fundamentals.
Blackstone operates through four core divisions: Real Estate, Private Equity, Credit and Insurance, and Hedge Fund Solutions.
Shares of BX fell 3.88% on February 27, the same day news emerged about the AI data center initiative and the Volkswagen bidding competition.
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