Latest Private Equity Headlines in Review
Headline: Blackstone Raises Record Capital for European Real Estate Fund, Expands Presence in Consumer Healthcare with Karo Healthcare Acquisition
In a significant move, Blackstone Europe Real Estate Partners VII (BREP VII) has closed at €9.8bn ($10.8bn), marking the largest external capital pool the firm has ever raised for European property. This record-breaking fundraising reflects strong investor confidence and underscores Blackstone's growing dominance in the European real estate market.
The second-quarter 2025 report revealed that Blackstone deployed $6.2 billion in the quarter, including acquisitions in performing commercial real estate loans and industrial portfolios. With the capital raised for BREP VII, the company is poised to intensify acquisitions and investments across European commercial real estate sectors.
Meanwhile, in a separate development, private equity giant KKR is close to acquiring consumer healthcare group Karo Healthcare in a deal valued at more than €2.5bn. Karo Healthcare, previously owned by EQT, is a significant exit for the latter, who initiated the sale process last year. The acquisition expands KKR's exposure to resilient, cash-generating consumer health assets.
The sale of Karo Healthcare is not the only significant transaction EQT has been involved in recently. The firm also sold a €3bn stake in enterprise software leader IFS, a move that highlights sustained investor confidence in high-growth, sector-leading software assets. The company, now valued at €15bn following the sale, will continue to have TA Associates as an investor.
In a related development, technology investor Hg will increase its stake and become a co-controlling shareholder alongside EQT in IFS. The sale brought in new investors, including the Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB).
These transactions occur amid a slowdown in global dealmaking and falling asset valuations, underscoring the resilience of the European real estate and software sectors. The capital raised for BREP VII and the acquisitions made by Blackstone, such as Karo Healthcare, are likely to spur significant acquisitions and asset management activities, enhancing Blackstone’s market influence and contributing to evolving competitive dynamics and sector trends across Europe’s real estate landscape.
- Blackstone's European Real Estate Fund, BREP VII, has achieved a record valuation of €9.8bn, indicating strong investor confidence in the firm's growing dominance in the European real estate market.
- With the capital raised for BREP VII, Blackstone is expected to intensify its transactions and investments in various sectors of European commercial real estate.
- KKR is on the verge of a significant transaction, acquiring consumer healthcare group Karo Healthcare for more than €2.5bn, marking an exit for EQT.
- EQT, having initiated the sale process for Karo Healthcare last year, is also involved in other transactions, including the sale of a €3bn stake in enterprise software leader IFS.
- The sale of IFS has brought in new investors like the Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB), and TA Associates remains an investor in the company.
- Technology investor Hg will increase its stake and become a co-controlling shareholder alongside EQT in IFS following the sale.
- Despite a global dealmaking slowdown and falling asset valuations, the resilience of the European real estate and software sectors is evident, as demonstrated by the transactions involving Blackstone, KKR, and EQT, spurring further activity and shaping industry trends.
