Blackstone, the world’s largest alternative asset manager, has transitioned its Luxembourg offices to a more expansive space in the Vertigo Polaris Building, demonstrating a solid commitment to its European operations in the Grand Duchy. The inauguration of the new location was marked by a special event on Wednesday, graced by the presence of Luxembourg’s Prime Minister, Xavier Bettel, and Blackstone’s CFO, Michael Chae.
Blackstone has anchored its operations in Luxembourg for two decades. In 2017, it established Blackstone Europe, an alternative investment fund manager (AIFM) overseen by the Commission de Surveillance du Secteur Financier (CSSF). This move was designed to offer European investors easier access to its diverse fund portfolio.
Currently, Blackstone’s Luxembourg team includes over 50 professionals, spanning its Blackstone Europe, Credit, and Private Equity divisions. Furthermore, companies within Blackstone’s portfolio have provided employment opportunities to over 400 individuals in Luxembourg. This includes Mileway, a notable entity in the realm of last-mile logistics real estate assets in Europe, and Revantage, which delivers corporate support services to Blackstone’s Real Estate ventures.
In its present role, Blackstone Europe is the second largest in-house AIFM and the fifth largest AIFM in Luxembourg. Entrusted with a substantial 67.5 billion euro across 81 distinct investment structures as of Q2 2023, the firm’s Luxembourg operation plays a crucial role in supporting Blackstone’s European and global strategies.
Continued growth foreseen
The new location is notably larger than Blackstone’s previous office, indicating a roadmap for continued growth in the region. A notable achievement for the firm was its recent certification by Great-Place-to-Work Luxembourg, recognizing its commitment to a conducive work environment.
At the launch event, Michael Chae, CFO of Blackstone, spoke about Luxembourg’s pivotal role in Blackstone’s European framework. He touched upon the growth and impact of Blackstone Europe since 2017 and conveyed his optimism regarding Blackstone’s future endeavors in Luxembourg. “Luxembourg is an important part of Blackstone’s operations in Europe,” he said.
Prime Minister Xavier Bettel voiced his insights, recognizing Blackstone’s instrumental role in positioning Luxembourg as a top-tier hub for asset managers in Europe. He accentuated the symbiotic relationship, highlighting Blackstone’s ongoing collaboration with the nation.
The decision to secure a larger office space in Luxembourg underlines the country’s emergent status in the alternative asset management domain within the European Union.