Blackstone-REIT Still Draining - Part 8

From time to time, we look in at the Blackstone Real Estate Investment Trust (BREIT) in which the UC chief investment officer suddenly dropped $4.5 billion as BREIT was experiencing a slow-motion run on the bank.

That run seems to be continuing, at least through August. Requests for withdrawals by investors exceed what BREIT is allowing them to take out. Investors tried to take out $3 billion and were given $1.3 billion. 

BREIT keeps emphasizing in its monthly reports that requests for withdrawals are decreasing, but that may simply mean that gradually those who wanted out are being partially paid off, month by month.

Source of information: https://www.globest.com/2023/09/06/blackstone-fund-withdrawal-requests-drop-below-3b/.

As we have said before, we don't know whether the deal UCOP made for an above-normal return in exchange for a bailout will turn out to be a good deal. What we have questioned is the ex ante process - if "process" is the right word - for examining the prudence of the sudden infusion of UC funds, given the financial and legal risks entailed. Only one Regent on the Investments Committee seemed to have any questions along those lines, rather than the issue of BREIT's landlord-tenant relations.