TLDR
- Blackstone is launching a publicly traded vehicle to buy AI data centers, targeting tens of billions in capital
- The company is initially seeking funding from sovereign wealth funds and institutional investors
- Blackstone and Brookfield have both submitted bids of at least €8 billion for Volkswagen’s heavy diesel engine unit, Everllence SE
- Blackstone Life Sciences struck a co-funding deal with Johnson & Johnson to advance AML cancer drug bleximenib
- RBC Capital initiated coverage with an Outperform rating and a $179 price target on February 23
The alternative asset manager is launching a new publicly traded acquisition vehicle focused on buying AI data centers. The goal is to give retail investors access to the AI infrastructure space — a market Blackstone wants to dominate.
The firm is starting by raising capital from sovereign wealth funds and institutional investors. From there, it plans to eventually pull in tens of billions from a broader pool of investors.
It’s an ambitious play. But not everyone is convinced the timing is right.
Some investors have raised concerns that large AI training facilities built far from major cities could become obsolete as the technology evolves. Blackstone is stepping into that debate head-on.
The move is part of a broader strategy to grow beyond its traditional client base of pensions and endowments. Retail investors are increasingly in the crosshairs.
Volkswagen Unit Bid
On the deal front, Blackstone and Brookfield Asset Management (NYSE: BAM) have both submitted bids of at least €8 billion ($9.4 billion) for a majority stake in Volkswagen’s Everllence SE unit.
Everllence makes ship engines and power-plant turbines. Volkswagen has been looking to offload the business as part of an effort to streamline operations and improve profitability.
Other firms in the running include Advent International, Bain Capital, EQT AB, and CVC Capital Partners — all of which have advanced to the next round of bidding.
No deal is guaranteed. Bloomberg’s sources noted that deliberations are still ongoing.
Biotech and Analyst Coverage
On February 23, Blackstone Life Sciences announced a co-funding agreement with Johnson & Johnson to advance the clinical development of bleximenib, an investigational oral drug targeting acute myeloid leukemia.
AML is the most common acute leukemia in adults and has the lowest survival rate among all leukemia types. Management described it as an extremely difficult condition to treat.
This is the first time BXLS and Johnson & Johnson have entered into a co-funding arrangement, making it a milestone for Blackstone’s life sciences arm.
The same day, RBC Capital initiated coverage of Blackstone with an Outperform rating and a price target of $179.
RBC told investors that Blackstone holds a “first-mover advantage” as the first alternatives firm to launch a private wealth team. The bank sees it as a long-term beneficiary of retail investor growth and a recovering real estate market.
Blackstone operates across four segments: Real Estate, Private Equity, Credit and Insurance, and Hedge Fund Solutions.
BX stock fell 3.88% on February 27, the same day the AI data center and Volkswagen stories broke.
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