Overview

Blackstone Real Estate Special Situations Advisors (“BSSF”), targets global non-controlling debt and equity investment opportunities in the public and private markets.  Its investment portfolio is expected to consist of a variety of real estate and real estate-related securities, including mezzanine debt, publicly-traded debt securities, whole loans, preferred equity, bridge equity, publicly-traded equity securities, and joint venture equity.  BSSF is led by Michael Nash, Senior Managing Director of The Blackstone Group L.P. and the Chief Investment Officer of BSSF.

Investment Philosophy

BSSF will focus on fundamental valuation and market analysis, a preference for institutional-quality real estate, the prudent use of leverage and a concentrated/value-based investing framework in seeking investment opportunities.  In addition, with respect to private debt and equity and public market debt and equity transactions, it will generally seek investments that emphasize greater liquidity, shorter duration and lower volatility than comparable private equity investments.  Primary areas of investment include:

• Mezzanine Debt:  Investing in mezzanine debt tranches that yield attractive risk-adjusted leveraged returns.
   
• Recapitalizations:  Recapitalization opportunities as we expect that highly-valued assets financed with excessive leverage will require restructuring or recapitalization.
   
• Distressed Investments:  We expect an increase in loan delinquencies within the commercial mortgage market, creating opportunities to invest in various debt instruments on a discounted basis.
   
• Listed Equity and Debt Securities:  Investments in public securities based on fundamental value-oriented research.
   
• Preferred Equity:  Investments in preferred equity investments associated with the acquisition, development and recapitalization of real estate opportunities.
   
• Limited-Control/Minority Interest Investments:  Platform investments, limited partner interests, and discrete asset transactions.

Capital Preservation and Risk Management

BSSF intends to invest in various parts of the capital structure in order to produce the most attractive risk-adjusted returns.  The BSSF strategy will adhere to a policy of prudent leverage with maximum flexibility to structure investments in an effort to preserve investor capital.

The Team

In addition to Michael Nash, Senior Managing Director of The Blackstone Group and the Chief Investment Officer of BSSF, the investment team consists of the following individuals: Randall Rothschild, Chief Operating Officer; Garrett Goldberg, Chief Financial Officer; Peter Sotoloff, Frank Forster, Tyler Henritze, and Juan Garcia.  The team is further supported by Peter Koffler, Chief Compliance Officer; and Michael H. Casey, Managing Director, Investor Relations.

BSSF will also benefit from the collective real estate and investing experience of the Blackstone real estate group’s global breadth and experience.

To speak with a professional about BSSF, please contact:

Mike Casey on +1 212-583-5003 or caseym@blackstone.com