Blackstone launched two closed-end funds Wednesday in partnership with Wellington Management and Vanguard, opening its private equity, credit, infrastructure, and real estate portfolios to individual investors. WVB Blackstone All Privates Fund offers exposure across Blackstone’s perpetual strategies in those four asset classes. WVB All Markets Fund combines the same private holdings with Vanguard fixed income and index products plus Wellington-managed public equities. Bank of America clients will be the first to access the products, which target qualified purchasers and accredited investors.
Wellington will act as fiduciary and allocate assets through its multiasset portfolio division. The All Privates Fund carries a 3% redemption limit; the All Markets Fund allows 10%. Blackstone president Jon Gray said the blended approach aggregates risk and return across the firm’s strategies. The three partners will consider additional products depending on investor demand.
Fund managers face mounting pressure to democratize access to private markets as institutional enthusiasm cools. Private credit funds have fielded heavy redemption requests this year, and private equity firms contend with sluggish exit activity and harder fundraising. Jean Hynes, Wellington’s chief executive, said private markets now represent a larger share of the economy than 25 years ago, when public equities offered fuller coverage. Vanguard president Greg Davis said individual investors have been shut out of that growth.
Bloomberg
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