PSERS OPPORTUNISTIC REAL ESTATE PROGRAM
Recommendation for Investment in
Blackstone Real Estate Partners VI, L.P.
Charles J. Spiller
Director of Alternative Investments
January 25, 2007
Blackstone Real Estate Partners VI, L.P.
EXECUTIVE SUMMARY
The Blackstone Group (together with its affiliates, “Blackstone”), a privately held merchant
banking firm, is sponsoring its eighth real estate fund and its sixth U.S./global real estate
investment fund, Blackstone Real Estate Partners VI L.P., together with its parallel funds
(“BREP VI” or the “Partnership”). BREP VI is the successor fund to Blackstone Real
Estate Partners V L.P. and its parallel funds (“BREP V”), a $5.25 billion fund that began its
investment period in December 2005.
Blackstone is one of the world’s largest and most successful alternative asset managers,
having raised approximately $52 billion for discretionary private investment funds focused
on alternative asset classes. Blackstone also manages approximately $15 billion in
discretionary marketable alternative asset programs, approximately $2 billion in
proprietary hedge funds, and approximately $2 billion in mutual funds. To date,
Blackstone has raised over $10 billion of capital for real estate private equity investing
through its U.S./global real estate investment funds and nearly $3 billion for its European-
focused funds.
Since 1991, through its U.S./global real estate funds, its two European-focused funds
(“BREP International”), and “Pre-BREP” real estate investments, Blackstone has
invested/committed approximately $11.5 billion of equity capital into 211 separate real
estate transactions (including all add-ons) with a total transaction value of approximately
$99 billion (which includes pending transactions through December 2006).
The Partnership will annually elect on an irrevocable basis its level of co-investment
participation in Investments with BREP International II. The Annual Co-Investment
Participation