Blackstone (BX) Bets Big on Europe with $500 Billion Push

Blackstone Group (BX), a global investment firm managing over $1.2 trillion in assets, is gearing up for its biggest move in Europe yet. Blackstone’s co-founder Stephen Schwarzman told the Financial Times that the firm plans to invest at least $500 billion in the region over the next decade. He sees rising support for deregulation and new public spending, especially in Germany, as signs of a fresh start for European growth.

Why Europe Looks Ripe for Growth

Growth in Europe has trailed the U.S. for years, but Schwarzman believes change is underway. Leaders across the EU, he noted, are becoming “more sensitive” to slow growth and are now “looking at deregulation” to help fix it. Germany, in particular, is stepping up. Under new Chancellor Friedrich Merz, the country is using public funds to boost sectors like roads and defense. Schwarzman believes these moves could help Europe’s largest economy move beyond its heavy reliance on the car industry.

This broader focus on reform and fewer rules could pave the way for more deals, more capital, and stronger growth across the region.

Blackstone’s Big Bet on Europe

Blackstone has already spent 25 years building its base in Europe and now holds about $350 billion in assets there. With interest rates coming down and European assets still cheaper than U.S. peers, the firm plans to scale up its investments in the region.

 “We think that we will put at least $500 billion of new assets in Europe,” Schwarzman said. That would mark a big step up from current levels — and signal rising confidence in Europe’s outlook.

The firm is no stranger to big deals. It has already led to some of the region’s biggest takeovers. In late 2022, it took part in the €54 billion privatization of Italian infrastructure group Atlantia. In 2023, it followed up with the €14 billion acquisition of Adevinta, a top online classifieds firm in Norway.

Rivals Rush In

Blackstone isn’t alone in betting big on Europe. Other private capital giants are also growing more upbeat about the region. Earlier this month, Apollo said it plans to invest as much as $100 billion in Germany over the next 10 years. Also, private equity group Thoma Bravo, known for software deals, recently opened a Europe office to target big buyouts and tap the valuation gap with U.S. firms.

Is Blackstone Group Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on BX stock based on eight Buys and eight Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average BX price target of $151.20 per share implies 5.76% upside potential.

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