Exclusive | Blackstone to double India exposure to $100 billion in 5 years: Jon Gray

Blackstone plans to double its investments in India to $100 billion over the next five years from the current $50 billion, President Jon Gray told CNBC-TV18, as he reaffirmed the global investment firm's long-term confidence in the country's growth prospects despite market volatility. “Definitely. We’ve said that we have about $50 billion in real estate and companies here.

Our goal over the next five years is to double that to $100 billion.” BLACKSTONE PRESIDENT JON GRAY The planned increase comes as Blackstone sees opportunities across real estate, digital infrastructure, financial services, healthcare and manufacturing, supported by India's economic growth and expanding middle class. “As long as the economy continues to grow, and the government continues to support that growth with policies that give foreign investors certainty and clarity, I think the opportunity set will grow,” Gray said, adding that the firm would continue to take a long-term approach. ‘Next century will belong to India’ Gray said Blackstone remains confident in India's long-term potential, owing to its workforce, technology capabilities, infrastructure development and scope for economic expansion. when asked whether he believed the next century would belong to India, Gray said, “Yeah, we do”.

He pointed to India's gross domestic product (GDP) per capita of about $3,000, which he said was around one-thirtieth of the US level, as well as its educated workforce, technology strengths and infrastructure development. “Compared with other large economies, India is in a league of its own in terms of growth,” Gray said, referring to the country's economic performance. He added that investing in India often requires building businesses and expanding their capacity to serve a growing domestic market, rather than simply acquiring established assets.

“In a developed market, you might be buying existing businesses or real estate. Here, you have to be a builder,” he said. India’s capital markets an ‘incredible asset’ Gray also highlighted India's capital markets as an important strength, pointing to the scale of the stock market, liquidity and the pipeline of initial public offerings (IPOs).

“I’m not sure Indians recognise how powerful and valuable their capital markets are. They’ve become an incredible asset to the country,” he said. Blackstone has completed 14 IPOs over time, Gray said, adding that five of the six publicly listed real estate investment trusts (REITs) in India had been sponsored by the firm.

“There’s a lot of liquidity in this market, which is a very good sign for long-term growth and capital formation,” he said. Addressing the contrast between India's IPO activity and foreign portfolio investor outflows, Gray said public markets can be volatile as investor narratives and valuations change. He said Blackstone focuses on the underlying growth of the economy rather than short-term market movements.

“It’s healthy that the local market has stayed strong and invested,” he said, adding that he expects foreign investors looking for growth opportunities globally to rediscover India. Gray said periods of market weakness can also allow long-term investors to acquire businesses or real estate at more reasonable prices. Blackstone, he added, remained committed to India despite greater caution in the markets.

Real estate, digital infrastructure among focus areas Blackstone's existing real estate investments in India, particularly in logistics, hotels and shopping centres, have performed well, Gray said. The firm is also looking at opportunities linked to artificial intelligence (AI), including data centres, cloud infrastructure and computing capacity. He identified financial services, healthcare, travel and manufacturing as other areas with potential as the middle class expands and businesses and consumers seek more services.

Gray said the firm's investment approach would remain focused on identifying businesses with strong management teams and helping them expand. “The key is to find good companies and great managers, and then lean in to help them,” he said. Read more: Ultra-luxury hospitality firm Kerzner International eyes first India deal in 2027: CEO Zuber For the full interview, watch the accompanying video Blackstone's Jonathan Gray: India is moving from emerging market to global investment powerhouse Tags Home / Business News / Exclusive | Blackstone to double India exposure to $100 billion in 5 years: Jon Gray

Source: CNBC TV18