TLDR
- A new publicly traded vehicle dedicated to acquiring AI data centers is being launched by Blackstone, with a capital target in the tens of billions
- Initial fundraising efforts are directed toward sovereign wealth funds and major institutional players
- Bids exceeding €8 billion have been submitted by both Blackstone and Brookfield for Volkswagen’s Everllence SE, a heavy diesel engine manufacturer
- A co-funding partnership between Blackstone Life Sciences and Johnson & Johnson will advance bleximenib, an experimental AML cancer treatment
- On February 23, RBC Capital began coverage with an Outperform rating and set a price target of $179
The investment giant is unveiling a fresh publicly traded acquisition platform centered on AI data center assets. The initiative aims to open doors for everyday investors to participate in the rapidly expanding AI infrastructure sector — an arena where Blackstone seeks market leadership.
Initial capital formation will focus on sovereign wealth entities and large institutional backers. Following this phase, the firm anticipates attracting tens of billions more from a wider investor spectrum.
The strategy is certainly bold. However, skepticism exists regarding market timing.
Certain market participants have expressed worries that massive AI training complexes constructed in remote locations might face obsolescence as technological capabilities advance. Blackstone is directly addressing these concerns with this venture.
This initiative represents part of a larger effort to expand beyond conventional client relationships with pension funds and university endowments. Retail market participants are now a primary focus area.
Volkswagen Unit Bid
Regarding transactions, Blackstone and Brookfield Asset Management (NYSE: BAM) have each presented offers valued at no less than €8 billion ($9.4 billion) for controlling ownership in Volkswagen’s Everllence SE division.
Everllence specializes in manufacturing marine propulsion systems and industrial turbine equipment. Volkswagen has pursued divesting this asset as part of corporate restructuring aimed at operational efficiency and enhanced margins.
Additional contenders include Advent International, Bain Capital, EQT AB, and CVC Capital Partners — all have progressed to subsequent bidding stages.
A finalized transaction remains uncertain. Sources cited by Bloomberg indicated that negotiations continue.
Biotech and Analyst Coverage
Blackstone Life Sciences revealed a co-funding partnership with Johnson & Johnson on February 23 to support clinical trials for bleximenib, an experimental oral medication designed to combat acute myeloid leukemia.
AML represents the most prevalent acute leukemia diagnosis among adult patients and carries the poorest survival statistics across all leukemia categories. Company leadership characterized the disease as exceptionally challenging to address therapeutically.
This marks the inaugural co-funding collaboration between BXLS and Johnson & Johnson, representing a significant achievement for Blackstone’s healthcare investment division.
That same date, RBC Capital commenced coverage of Blackstone shares with an Outperform designation and established a $179 price objective.
RBC communicated to clients that Blackstone possesses a “first-mover advantage” as the pioneering alternatives manager to establish a dedicated private wealth division. The firm views it as positioned for long-term gains from expanding retail participation and real estate market stabilization.
Blackstone’s operations span four core divisions: Real Estate, Private Equity, Credit and Insurance, and Hedge Fund Solutions.
BX shares declined 3.88% on February 27, coinciding with news releases regarding the AI data center platform and Volkswagen acquisition proposal.
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