Blackstone (NYSE: BX) is expanding its private credit division by hiring two experienced professionals from KKR (NYSE: KKR) and Ares Management. These new hires will focus on investment-grade asset-based debt transactions. Andie Goh, previously with Ares, will join in early January, while Jack Ervasti, who co-headed consumer asset-backed debt at KKR, started earlier this month. Both will serve as managing directors at Blackstone Credit and Insurance (BXCI) in New York.

The private credit sector is evolving, with firms like Blackstone seeking higher-quality credits backed by tangible assets. The BXCI division, led by Gilles Dellaert, currently manages over $350 billion in assets and aims to increase its total credit assets to $1 trillion within the next decade. This strategic move reflects Blackstone's commitment to the investment-grade credit market, which includes a diverse range of transactions from consumer loans to energy transition projects.

Despite requests for comments, Blackstone, KKR, Ares, and Ervasti remained silent, while Goh confirmed her new role. The infrastructure and asset-based credit platform, overseen by Robert Horn and managing more than $80 billion in assets, plays a crucial role in BXCI's growth strategy and has seen several key hires this year.

As of the end of September, Blackstone's credit arm has become its largest business segment, surpassing real estate. The firm has also reclassified part of its real estate lending under the credit umbrella. Jonathan Gray, Blackstone’s president, emphasized the firm's ambition to build a significant third-party performing credit operation, anticipating substantial growth in the coming years.

In addition to its credit expansion, Blackstone has made notable investments in infrastructure and energy. This includes acquiring a $1 billion portfolio of infrastructure loans from Banco Santander SA and investing $288 million in Pine Gate Renewables, a company focused on energy storage and solar solutions.