Blackstone has successfully finalised the fundraising for its latest opportunistic credit vehicle. The New York based firm announced on Tuesday that Blackstone Capital Opportunities Fund V has closed with more than $10 billion in investable capital. The fund reached its hard cap after being oversubscribed by investors. This milestone marks the largest opportunistic credit fund raised by the company to date.

The successful raise comes from the Blackstone Credit & Insurance arm. The division has been active for two decades and has a history of investing across various market cycles. Since the inception of the strategy in 2007, Blackstone has reported a 13 per cent net internal rate of return for its opportunistic credit investments. Currently, the firm manages a total of $520 billion in assets across its corporate and real estate credit platforms.

Management noted that the high level of interest from both new and existing investors shows a strong demand for private credit. The fund will use a flexible mandate to look for deals across different industries and geographic regions. It aims to provide structured solutions to companies, particularly those operating in sectors with strong thematic growth.

Lou Salvatore, Co-Portfolio Manager of the Capital Opportunities Funds said: “COF V is Blackstone’s largest opportunistic credit fund raised to date, reflecting continued strong institutional demand for private credit. Amidst a noisy backdrop for the industry, we believe this fundraise demonstrates the strength of Blackstone’s capabilities in private credit, and we’re grateful for the support from both longstanding and new investors.”

The firm plans to use its large sourcing network to deploy this capital into the private corporate credit market. Rob Petrini, Co-Portfolio Manager of the Capital Opportunities Funds, added: “COF V benefits from our robust sourcing engine and broad, flexible mandate, allowing us to invest across a wide range of industries, geographies, and capital structures. We believe that this is a very attractive environment to deploy flexible capital in private corporate credit as well as to provide opportunistic and structured solutions to companies in sectors with strong thematic tailwinds.”