Beautiful Virgin Islands

Saturday, Oct 25, 2025

The SEC is reaching out to Blackstone and Starwood after the real-estate giants limited investors' withdrawals from their funds, report says

The SEC is reaching out to Blackstone and Starwood after the real-estate giants limited investors' withdrawals from their funds, report says

The SEC is trying to understand the firms' processes for limiting redemptions, and what effects the moves could have on the market.

Blackstone and Starwood Capital Group are drawing attention from the Securities and Exchange Commission for their recent moves to limit the ability of individual investors to take their money out of the companies' real estate investment trusts, according to Bloomberg.

The real estate funds have recently seen a surge in withdrawal requests amid a broad drop in investor sentiment and potential economic downturn. This led both private equity giants to pause redemptions after monthly and quarterly withdrawal limits were reached.

Investors in and outside of the funds took notice, as has, apparently, the SEC. The regulatory agency reached out to both Blackstone and Starwood this month to assess the market impact and specific circumstances of the pauses, according to Bloomberg, which cited multiple anonymous sources. 

The agency was looking into how the firms served redemptions to their clients, and if any affiliates of the two companies sold their shares before the clients, according to one of the sources. The inquiries are not indications that either firm is under investigation or committed any wrongdoing, the report said.

Representatives for Blackstone and the SEC declined to comment to Insider. A spokesperson for Starwood did not return requests for comment on Friday.


Individual investors deal a blow to Blackstone's stock


Blackstone launched the Blackstone Real Estate Income Trust, known in the industry as BREIT, in 2017 as a way to cater to rich individuals — beyond the firm's typical large institutional client — who were in search of better returns in what was then a near-zero-interest rate world.  

By the assets that flowed into the fund, it was a success. It has amassed $68 billion, and last year the firm looked to replicate the fund for private-credit investors with the Blackstone Private Credit Fund, known as BCRED.

But this year has brought challenges as the real estate market sours and more investors are turning bearish. Bill Katz, a research analyst at Credit Suisse who tracks Blackstone, raised concern over the funds' growth in a report to clients and downgraded the stock to the equivalent of a "sell" rating. Blackstone shares are down 21% in the past month, compared with a 3% drop for the S&P 500.

In recent statements to Insider, a Blackstone representative said BREIT returns have been strong. The fund has posted a return of 8.4% so far this year and a three-year annualized return of 14.9%, according to its website, representing respectable performance to some analysts.

"In response to BREIT redemption limits, our experts agree that the fund is delivering on its mandate from both a performance and liquidity perspective," Morgan Stanley research analysts said in a report to clients on Friday.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×