00:00Bloomberg reporter Lukia Giftipoulou has been covering the story and she joins us now.
00:05I mean, I guess the first obvious low-hanging question, low-hanging fruit question is like
00:09there's been jitters around more retail-oriented funds. Blackstone has not necessarily been immune
00:14to that. So what exactly are these funds? How are they set up? And is it kind of different
00:18from some of the BDC fears that have been permeating through markets?
00:21I guess the main difference with the BDCs is that they're not private credit funds.
00:24They have a mixture of like they will have all of Blackstone perpetual funds. So
00:28the real estate, private credit, private equity, infrastructure and so on. So there's a number
00:34of asset classes. I don't know that anyone can guarantee they will be immune to the pressures
00:39if people freak out. But I think it's not a pure private credit play where there are specific fears.
00:45And that's the reason why retail investors are heading out.
00:48Fears, freak out. I mean, that leads to my next question, which is what kind of redemption
00:53limits are they putting on these funds?
00:54So one has a 3% redemption limit and the other one has a 10% redemption limit. There's one
01:00where
01:00there's a bigger component of like a liquid slip from Vanguard and Wellington where there's more
01:05index funds and other securities. And that I think is the lower one. But the other one is called the
01:12Blackstone Private Markets Fund. And that has a higher redemption limit.
01:18We're also going to hear from Blackstone tomorrow. They're going to be reporting their earnings.
01:21What are we expecting and how big will wealth be contributing to Blackstone, do you think?
01:25Because it's been a big push for theirs.
01:27I think it's been a bit it's been significant for them for a while. I don't want to put specific
01:31figures right now, but it's been a very big driver of revenues for for a few years now.
01:38These the funds will be small at first. But I think where I would focus is a fund that the
01:42fact
01:42they're doing it with Vanguard, which is like the biggest name in Main Street and that people trust to
01:48bring them like good cheap funds. They're rolling it out with Mary Lynch just at the start. But I
01:54have the sense that it's going to be much wider going forward. So you know, stay tuned.
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