Finance

Blackstone Plans to Borrow $1 Billion Against Its Own Investments to Free Up Cash

  • Firm looking to banks rather than private credit lenders
  • Cash wouldn’t be used to pay distributions to investors
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Blackstone Inc. intends to borrow more than $1 billion against investments in an older private equity fund as a once-unorthodox form of lending gains traction among the biggest money managers.

The firm has explored borrowing on a so-called net-asset-value loan backed by deals in its $18 billion flagship private equity fund that debuted in 2016, according to people with knowledge of the matter.