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BREIT Investor Losses and Blackstone’s Claims

BREIT Investor Losses and Blackstone’s Claims

Blackstone, the world’s largest private-equity firm, launched BREIT (Blackstone Real Estate Income Trust) in 2017, targeting ordinary investors. Marketed as a stable, high-return investment, BREIT attracted significant investments, reaching $114 billion in assets by 2021. However, concerns have arisen over the accuracy of BREIT’s valuations and its ability to meet investor redemption requests, leading to a $15 billion withdrawal demand and a 20% drop in Blackstone’s stock.

Experts argue BREIT’s success relies on inflated valuations and new investor inflows, drawing comparisons to a Ponzi scheme. Criticism from financial analysts like Craig McCann and hedge fund managers such as Nate Koppikar underscores the skepticism. Recent recovery attempts, including a significant investment from the University of California, came with special guarantees, further questioning BREIT’s stability.

Bakhtiari & Harrison: Investor Advocacy

Legal firm Bakhtiari & Harrison has become a voice for investors, highlighting potential misrepresentations by Blackstone. Their focus is on ensuring transparency and accountability, emphasizing the need for independent valuations and regulatory oversight. The firm’s advocacy underscores the risks ordinary investors face when investing in private-equity products like BREIT, which lack the transparency and regulation of publicly traded funds.