TLDR
- Blackstone unveils plans for a publicly traded investment vehicle targeting AI data center acquisitions with multi-billion-dollar capital ambitions
- Initial fundraising efforts focus on attracting sovereign wealth funds alongside institutional capital sources
- Both Blackstone and Brookfield submitted competitive bids exceeding €8 billion to acquire Volkswagen’s Everllence SE heavy diesel engine division
- Blackstone Life Sciences enters co-funding partnership with Johnson & Johnson for bleximenib, an AML cancer treatment candidate
- RBC Capital launched coverage on February 23 with Outperform rating and $179 price target
The investment giant is rolling out a fresh publicly traded acquisition vehicle dedicated to purchasing AI data centers. This initiative aims to democratize access to AI infrastructure investments for retail participants — a sector where Blackstone seeks leadership.
Initially, the company is securing commitments from sovereign wealth funds and institutional capital sources. The long-term vision involves attracting tens of billions in capital from a more diverse investor universe.
The strategy is bold, but questions remain about execution timing.
Certain market participants worry that massive AI training complexes constructed in remote locations might face obsolescence as technological paradigms shift. Blackstone appears ready to confront these skeptics directly.
This initiative reflects a strategic pivot toward expanding beyond traditional institutional clients like pension funds and university endowments. Retail investors now represent a key growth demographic.
Volkswagen Unit Bid
In merger and acquisition activity, Blackstone and Brookfield Asset Management (NYSE: BAM) each delivered bids valued at minimum €8 billion ($9.4 billion) for a controlling interest in Volkswagen’s Everllence SE division.
Everllence specializes in manufacturing marine engines and industrial turbines for power generation. Volkswagen seeks to divest this asset as part of operational rationalization and margin enhancement initiatives.
Competing bidders include Advent International, Bain Capital, EQT AB, and CVC Capital Partners — all have progressed to subsequent bidding phases.
Transaction completion remains uncertain. Bloomberg sources indicate negotiations continue without finalization.
Biotech and Analyst Coverage
On February 23, Blackstone Life Sciences revealed a collaborative funding agreement with Johnson & Johnson to progress clinical trials for bleximenib, an oral investigational therapy for acute myeloid leukemia patients.
AML represents the most prevalent acute leukemia variant in adult populations and carries the poorest survival outcomes among all leukemia classifications. Leadership characterized it as an extraordinarily challenging malignancy to address therapeutically.
This marks the inaugural co-funding collaboration between BXLS and Johnson & Johnson, representing a significant achievement for Blackstone’s life sciences division.
Concurrently, RBC Capital commenced coverage of Blackstone with an Outperform designation and $179 price objective.
RBC communicated to investors that Blackstone possesses a “first-mover advantage” as the pioneering alternatives manager to establish a private wealth distribution team. The firm views Blackstone as positioned to capitalize on retail investor expansion and real estate market stabilization.
Blackstone conducts operations through four primary divisions: Real Estate, Private Equity, Credit and Insurance, and Hedge Fund Solutions.
BX stock declined 3.88% on February 27, coinciding with announcements regarding the AI data center vehicle and Volkswagen acquisition pursuit.
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