Blackstone is ramping up its focus on international credit opportunities, aiming to diversify its portfolio with a broader range of debt, including local-currency investments. Gilles Dellaert, Global Head of Credit & Insurance, highlighted substantial growth potential in Europe and Asia, aiming to replicate the scale and diversity achieved in the US.

The firm is targeting the private investment-grade credit market, which includes asset-backed financing beyond corporate debt, estimated to be worth between $25 trillion and $50 trillion. As the world's largest alternative asset manager, Blackstone is expanding its debt business to capitalize on the higher yields and spreads in the $1.7 trillion private credit market.

By the end of June, Blackstone's credit and insurance business managed around $330 billion in assets. This segment delivered the firm's largest gains in the second quarter, with fee earnings up 29% and profits available to shareholders surging 51%, driven by higher capital inflows and successful investments.

In April, Blackstone hired Dan Leiter, former Global Head of Securitised Products Trading at Morgan Stanley, to lead its international credit and insurance division. The firm's global direct lending business currently totals about $120 billion, with plans to develop a $5 billion lending platform in Asia. Since 2022, Blackstone has deployed approximately $1 billion annually to the region.

Initially focused on financing highly leveraged companies, Blackstone is now lending to over 2,000 non-investment-grade borrowers. Competitors like Apollo Global Management and Carlyle Group are also moving into investment-grade debt, recognizing the lucrative potential.

Blackstone's strategic expansion into international credit markets underscores its commitment to achieving global scale and diversity, mirroring its success in the US.