The Blackstone Group is notoriously one of the most successful investment firms in the world.
You don’t just luck into managing nearly $1 trillion of assets. You’ve got to earn that level of cache.
So, it stands to reason that amid these uncertain financial times, it would be beneficial to learn how such a prominent group is approaching investments.
Make no mistake – this firm is not immune to market downturns. In fact, its shares dropped 37% from their November 2021 high of $147.88 per.
However, while many investment firms are hitting the panic button and doing damage control to stay afloat, Blackstone has kept moving methodically ahead.
And, with the firm set to announce its Q2 financials at the end of this week, there is one industry in particular it’s leaning on to keep the train moving…
Blackstone entered 2022 with record-setting marks, as its fourth quarter performance last year nearly doubled the net income from the final quarter of 2021.
One of the biggest areas of investment for the firm leading up to that watermark was the real estate rental market.
It’s no secret that inflation is having dire impacts on average rent costs across the country. While it is much easier said than done to simply buy rental properties, the equity crowdfunding space provides ample opportunities to enter the market without big-dollar investment.
“You can now invest in real estate through [equity crowdfunding platforms],” Angels & Entrepreneurs chairman of the board Buck Jordan wrote back in March. “On these platforms, you can invest with much smaller ticket sizes (instead of buying a whole apartment) and still participate in the upside of this trend.”
The fact remains that innovation in the real estate industry is taking place in the world of startups.
The larger companies have padded their pockets for decades, however, as a result, they’re not as nimble or capable of pioneering new methods.
Where they fall short, early-stage companies are filling in the gaps and ultimately laying the groundwork to forever alter the way the industry operates.
That means angel investors are looking down the barrel of a unique opportunity to profit.
After all, real estate remains one of the better places to hedge against macroeconomic troubles. There’s reason to believe startups in this sector are better positioned to prosper down the line than companies in industries more directly tied to the broad market’s performance.
And real estate rental is far from the only segment of this industry raking in dollars.
Blackstone Group is one of many investment firms targeting real estate as a place to put their money while the markets tumble.
And as more and more startups turn to the crowd for capital, the proliferation of opportunities in this market only figures to increase for angel investors.
So, keep your eyes peeled, do your due diligence, and invest alongside industry titans.
You just might emerge from these uncertain times stronger than before.