Investors Head for the Exits at Illiquid Funds: Blackstone Limits Withdrawals from Giant Real Estate Fund

By Pam Martens and Russ Martens

Investors seem to be thinking a lot these days about that old Will Rogers maxim: “People should be more concerned with the return of their principal than the return on their principal.”

Investors have been demanding their money back from a growing number of crypto outfits and now that anxiousness is broadening out.

The latest to be hit with a surge in investor demand for their money back is the Blackstone Real Estate Income Trust (BREIT). Unlike most REITs, BREIT doesn’t trade on a stock exchange. Investors have to ask the trust to buy back their shares when they want their cash back.

According to an announcement posted at the Blackstone website, it has begun to limit withdrawals. In November, investors only received 43 percent of the withdrawals they requested. The statement explains: