Blackstone, one of the world’s leading private asset investment firms, has relocated to a new flagship office in the Vertigo Polaris Building, situated in the Cloche d’Or district. The official inauguration was attended by Xavier Bettel (DP), prime minister, and Michael Chae, chief financial officer of Blackstone, the company said on Wednesday 27 September 2023. According to the firm, the move signalled its reinforced focus on Luxembourg, where it has been operating for two decades.
In 2017, Blackstone established Blackstone Europe Fund Management (BEFM), regulated by Luxembourg’s Financial Sector Supervisory Commission (CSSF). BEFM was set up with the objective of simplifying access for European investors to Blackstone’s range of funds. According to Blackstone, BEFM currently manages nearly €67.5bn in assets across 81 investment structures as of the second quarter of 2023. As of 2023, BEFM ranks as the second-largest in-house alternative investment fund manager (AIFM) and fifth largest AIFM overall in Luxembourg, specialising in areas such as valuation, risk management, distribution, and anti-money laundering and compliance functions.
Blackstone’s operation in Luxembourg has grown to include over 50 employees spread across BEFM, and credit and private equity services. The firm stated that its portfolio companies also employ more than 400 people in Luxembourg. These companies include Mileway, described by Blackstone as Europe’s largest owner of last-mile logistics real estate assets, and Revantage, a shared services platform, which provides corporate support services to the firm’s real estate investments.
The new office space is significantly larger than Blackstone’s previous premises, doubling its footprint in Luxembourg. Chae stated, “Luxembourg is an important part of Blackstone’s operations in Europe. Since launching Blackstone Europe Fund Management in 2017, we have built out a highly skilled and diverse team, which is now one of the largest alternative investment fund managers in the country. As we continue to grow in Europe and globally, we are excited to see our presence in Luxembourg expand in the future.”
Bettel echoed the sentiment, stating “Blackstone is a valued partner in Luxembourg’s journey to becoming one of the leading destinations for asset managers to do business in Europe, and greatly contributes to our country’s prosperity. I am delighted to celebrate the opening of Blackstone’s new state-of-the-art office, and their continued commitment to Luxembourg.”