Blackstone Private Equity Strategies Fund (BXPE)
Score
3.5
- ClassS
- Managed byBlackstone Private Investments Advisors L.L.C.
- Release dateApril 4, 2024
- UpdatedJuly 23, 2025
Net Asset Value
$3.9B(as of July 2025)
Max. Offering Size
Unlimited(perpetual private fund)
Investment Style
Global private equityHQ Location
New York, NYAmount Raised
$3.9B(as of July 2025)
Legal Construction
Delaware Limited PartnershipAsset Class
Private EquityInception
February 2024Eligibility
Accredited & qualified purchasers (U.S. and non-U.S. vehicles)Min. Investment
$50,000 (varies by feeder/region)Annualized Distribution Rate
NoneNet Total Return
15.2% annualized (Class S, inception–Sep 2025)Distributions
NoneIncentive Fee
12.5% carry over 5% hurdle (net of fees/expenses)Annual Management Fee
~2.0% on NAV (class-dependent)Holding Period
EvergreenAdvisor
Blackstone Private Investments Advisors L.L.C.Distributor
Blackstone Private WealthAuditor
Deloitte & Touche LLPCounsel
Natasha Gopaul (Senior MD, BXPE)The Bottom Line
BXPE Class S promises access to Blackstone's $389 billion private equity platform with strong 15.2% annualized returns since inception and exposure to 15+ PE strategies through a single fund, but here's what they don't highlight upfront: you're paying up to 3.5% sales loads plus ongoing fees while locked into quarterly liquidity windows for a fund that launched just 20 months ago during the strongest private equity market in history. The Blackstone brand sounds compelling until you realize you underperformed the S&P 500 over the same period while giving up complete daily liquidity.
The real story? While BXPE outperformed bonds, cash, REITs, and gold, it significantly lagged public markets during one of the greatest bull runs ever recorded. For investors building wealth, this represents a speculative allocation to private equity that could provide portfolio diversification but at the cost of missing public market gains during your prime earning years while paying premium fees for illiquid exposure.
Your money vs reality
Period Analyzed: February 2024 - September 2025 (Class S inception to present)
Investment Amount: $10,000
Notes on Period: Analysis covers 1.67-year period from Class S availability (February 1, 2024) through September 2025. Performance reflects strong private equity market conditions but lagged public market returns during the same favorable period.
Index Sources: FTSE Nareit All REITs Index; Vanguard Prime Money Market Fund (VMFXX); 10-Year Treasury constant maturity; S&P 500 Total Return Index; SPDR Gold Trust (GLD).
Key Takeaways: BXPE significantly underperformed the S&P 500 by $1,292 during a historic bull market, raising questions about private equity’s value proposition when public markets are firing on all cylinders. While it beat most other asset classes, the opportunity cost versus stocks highlights the timing risk of entering private equity near market peaks.
Fund Strategy
Provides diversified global private equity exposure across buyouts, growth equity, and secondary opportunities. Structured as a perpetual private fund with quarterly tender offers, it seeks long-term capital appreciation through Blackstone’s private equity platform.
Fit Check
Available to: Accredited investors and qualified purchasers (U.S. and non-U.S. vehicles)
Ideal For:
- Investors with substantial liquid assets seeking diversified private equity exposure.
- Those comfortable with quarterly liquidity limits and long-term allocations (10–20% of portfolio)
Less Ideal For:
- Investors needing daily liquidity or disqualified by accreditation/purchaser requirements.
- Those highly fee-sensitive or preferring liquid alternatives for equity diversification.
Fast Facts
Key Concern
What It Means for You
Significant Underperformance vs Stocks.
Underperformed S&P 500 during prime bull market period.
High Sales Loads Up to 3.5%
Upfront fees immediately reduce your investment capital.
Quarterly Liquidity Restrictions
Limited access during market volatility when you need it most
Limited Track Record at 20 Months
Insufficient performance history across market cycles
Pros/Bulls Say
- Institutional-quality private equity access: Exposure to Blackstone’s $389B PE platform spanning 15+ strategies (buyouts, growth equity, secondaries) with monthly subscriptions and quarterly liquidity instead of traditional 10-year lockups.
- Diversification across strategies and vintages: Unlike single-strategy funds, BXPE can allocate flexibly across Blackstone’s global PE ecosystem, reducing concentration risk while capturing relative value.
- Early performance strength: Delivered 15.2% annualized returns since inception with private equity’s track record of inflation hedging providing resilience in uncertain economic environments.
Cons/Bears Say
- Opportunity cost vs public markets: Despite premium fees, BXPE has underperformed the S&P 500 during its first 20 months, raising questions about long-term alpha versus low-cost equities.
- Cyclical entry risk: Fund launched during historically high PE valuations with limited track record through downturns, leaving exposure to significant drawdowns in the next cycle.
- Layered fees + liquidity constraints: Up to 3.5% sales load, ongoing management and servicing fees, plus performance participation mean investors require sustained outperformance just to keep pace — all while facing 5% quarterly repurchase limits.
Verdict
3.5/5 — BXPE gives investors unprecedented retail access to one of the world’s largest private equity platforms with strong early returns. However, high fees, limited liquidity, and economic cycle risks mean it’s best suited for patient investors seeking long-term alternatives exposure, not fee-conscious growth maximizers.
Fees & Expenses
Fee Type
Why It Matters
How Calculated
Typical Amount
Subscription Fee
Broker/dealer commission for Class S subscriptions
% of NAV invested at purchase
Up to 3.5%
Management Fee
Portfolio management across multiple PE strategies
% of NAV, accrued daily
1.25% annually
Performance Participation
Incentive alignment on net investment gains
% of profits over 8% preferred hurdle
12.5% carry
Servicing Fee
Ongoing shareholder services/support
% of NAV annually
0.85% annually
Fee Impact Example:
On a $100,000 investment:
- You’d pay up to $3,500 upfront, plus ~$2,100/year in ongoing costs (mgmt + servicing + carry on gains).
- Over 10 years, this could exceed $20,000+ in fees — meaning the fund must consistently beat public equities and liquid alts to justify its structure.
Portfolio Snapshot
As of July 2025
Sector Focus Areas
Geography Diversification
Investment Stage Mix
Overview
ALIGNMENT: Abovee Average
- Blackstone’s fee structure of 12.5% over an 8% hurdle supports investor alignment better than many private equity funds, but substantial 3.5% upfront sales loads and 1.25% annual management fees create high fee drag regardless of outcomes.
- The quarterly liquidity and perpetual structure mean less pressure for competitive fee justification or accountability; scale may disadvantage retail investors versus institutional clients in terms of deal access and terms.
Performance: Above Average
- Strong initial returns (recently 15–16% annualized) reflect favorable conditions and a market launch during private equity’s historic highs, giving limited insight into stressed or typical economic periods.
- Limited operating history increases risk; late-cycle investing and high valuations may constrain future upside, and there’s little evidence of resilience across downturns or credit crises.
Market Risk: High
- The fund is exposed to all major private equity market risks: rising rates, economic uncertainty, credit tightening, and public market volatility can all reduce portfolio values and exit opportunities.
- High asset valuations, competitive deal sourcing, and slower exit activity add to risks of underperformance, particularly for funds investing at cyclical peaks.
Business Risk: Above Average
- BXPE is Blackstone’s first retail-focused PE offering, which brings operations, servicing, and liquidity management challenges unique to smaller accounts and individual investors.
- Fund success depends on ongoing access to institutional-quality deals; changes in market dynamics, competition, or exclusivity for institutional clients could impact future results and retail investor experience
Debt Risk: Above Average
- Heavy use of leverage at both the fund and company level amplifies upside and downside; rising interest rates increase financing costs and refinancing risk for portfolio companies.
- Debt maturities, covenant risks, and refinancing hurdles pose additional stress, especially for companies facing deteriorating conditions or stricter bank lending standards.
Liquidity Risk: Above Average
- Investors rely on quarterly repurchase windows capped at 5% of NAV, which can delay access to cash for months or years, especially if redemption demand rises during market stress.
- Private equity holdings are inherently illiquid and may force discounted asset sales to meet redemptions, with no daily exit or flexibility to rebalance as market conditions change.
Transparency: Average
- BXPE provides quarterly NAVs and annual reports, but holding-specific performance, methodology, and deal-level transparency is still limited versus public securities.
- Diversified strategy across many private equity styles complicates attribution; understanding what drives or drags performance remains challenging for most investors.
Manager Insights
The people running your money matter. Here’s what you need to know about this team:
Joseph Baratta
Global Head of Private EquityExperience & Highlights: 20+ years Blackstone; Led PE business to $389B AUM; Senior Managing Director; Oversees global investment strategy across buyouts, growth, and secondary strategies.
Education: Magna cum laude from Georgetown University.
Lionel Assant
Senior Managing DirectorExperience & Highlights: 15+ years Blackstone PE; Head of European PE; Led major buyouts including Merlin Entertainments, Logicor; Focus on consumer, healthcare, and industrial sectors.
Education: Graduated from the Ecole Polytechnique with a Master’s in Economic.
Prakash Melwani
Senior Managing DirectorExperience & Highlights: 20+ years Blackstone PE; Head of North American PE; Led investments in energy, industrials, and business services.
Education: Honors degree in Economics from Cambridge University, England, and an MBA with High Distinction from the Harvard Business School.
Peer Comparison
Vehicle
Blackstone Private Equity Strategies Fund (Class S)
The Private Shares Fund
The Sweater Cashmere Fund
Min. Investment
$50,000
$2,500
$500
Holding Period
Permanent/Perpetual Capital
Permanent Capital
Permanent Capital
Inception Date
February 2024 (Class S shares)
March 2014
April, 2022
Net Returns Since Inception (Annualized)
15.2% (as of Sep, 2025)
7.92% (thru 3/31/25)
5.28% (thru 3/31/24)
NOYACK® Score
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