Blackstone Bets Big: $200 Billion Shift Signals Europe's Private Credit Boom Is Just Beginning

Blackstone BX is making a bold move into European credit, eyeing what could be a $200 billion opportunity over the next decade. The firm's Chief Investment Officer for Credit and Insurance, Michael Zawadzki, pointed to Europe's improving fiscal conditions, defense and infrastructure tailwinds, and thinner competition as reasons why private credit looks increasingly attractive. Speaking on Bloomberg TV, he emphasized that because there's less capital in Europe, spreads are wider and leverage is lowerconditions that could create compelling risk-reward setups for long-term investors. The momentum is already visible: 2024 has been Blackstone's busiest year ever in European private credit.

Zawadzki also addressed the growing conversation around regulation. While S&P Global Ratings recently flagged a need for more transparency in the private credit market, Zawadzki pushed backsaying Blackstone is comfortable with the current framework. The firm structures its products using long-dated, closed-end funds, which are designed to match the duration of their underlying assets. Even for individual investors, liquidity caps are in place to reduce potential mismatch risks. His take? Every dollar flowing into private credit actually helps de-risk the broader financial system by adding stable, long-term capital.

As for the potential for trading private credit on a larger scalea topic gaining traction after reports of Apollo working with major banks on syndicated dealsZawadzki was skeptical it would become the norm. He said Blackstone clients aren't chasing liquidity; they're looking for spread and long-term yield that can't be found in public markets. Trading may surface from time to time, but he doesn't expect it to reshape the landscape. For now, the signal is clear: Europe is becoming a serious capital magnet for private creditand Blackstone wants a front-row seat.