BXCI to grow its ABF efforts, leverage insurance and retail capital, and bridge Europe's US$30trn infrastructure financing gap

Private credit has become the heart of Blackstone’s investment strategy, driving its expansion across Europe and globally. In 2024, the firm originated a record US$10bn in direct lending deals across the region. Its CLO division, based in Dublin and London, is another key element of the firm’s global credit business. As Blackstone looks ahead, its credit and insurance division (BXCI) is set to drive the firm’s next trillion-dollar opportunity. Executives Dan Leiter and Christopher Yonan outline how BXCI plans to capitalise on Europe’s US$30trn infrastructure financing gap to fulfill that vision. 

Since its inception in 1985, Blackstone has steadily expanded its international footprint, establishing offices in London, Paris, Dublin, and other key hubs to tailor its credit strategies to Europe’s complex and fragmented markets.  

“Our local presence in these cities gives us a distinct advantage – not just in bringing the right technology and products, but also in leveraging the deep regional expertise needed to execute deals effectively. We firmly believe in the power of good neighbourhoods for investing,” says Christopher Yonan, head of European infrastructure at BXCI.

Yonan, who transitioned from a legal career in project and structured finance at Milbank to senior roles at Lehman Brothers, Morgan Stanley and Jefferies before joining Blackstone in 2024, leads the firm’s European infrastructure push for BXCI. 

“Europe presents a more fragmented market compared to the US,” adds Dan Leiter, head of international for BXCI and global head of liquid credit strategies. “This fragmentation presents challenges but also creates opportunities for a well-capitalised, regionally integrated player like Blackstone.”

Leiter, a finance veteran with nearly two decades at Morgan Stanley before joining Blackstone in 2024, highlights the firm’s impressive global coordination.

“We’re not operating in isolation. We work closely with the investment committees and other teams to ensure that we have a comprehensive view of the market and are aligned in our approach,” he says. 

Insurance partnerships, private wealth influx and bank collaboration

Blackstone has also taken a distinctive approach to integrating insurance capital into its credit strategy. Unlike competitors that have chosen to acquire insurance companies, Blackstone has opted for a partnership-based model, working closely with insurance firms to align investments with their risk and return profiles.

With 27 insurance partnerships and over US$230bn in AUM, this strategy has proven scalable and resilient. 

“Insurance is critical to our strategy – especially in asset-backed finance, where the majority of the capital structures we produce are investment grade, which aligns perfectly with insurance clients' focus,” he says.

Blackstone sees strong potential for retail and private wealth capital in private credit markets. 

Recent data from Blackstone’s Private Wealth Solutions group supports this trend: in its latest Advisor Pulse survey of 309 financial advisors, over 60% allocated at least 5% of income-oriented portfolios to private credit, while more than 25% allocated 10% or more. The survey highlights a growing recognition among advisors that private credit offers a compelling balance of diversification, liquidity, and risk-adjusted returns.

“In private credit, we’re seeing a significant pickup in spreads compared to public markets,” explains Leiter. “Private credit currently offers a spread that’s roughly 200bp higher than comparable public alternatives.”

​Part of Blackstone's approach to integrating insurance capital into its credit strategy is a collaborative model that includes partnering with traditional banks.

“In Europe, bank lending is still much more dominant than non-bank lending,” explains Leiter. “There is a huge opportunity to collaborate with banks rather than to compete.” 

With banks scaling back in certain areas, Blackstone sees itself in a position to help banks optimise capital and manage their risks. "We’re able to partner with banks, especially in sectors like infrastructure and asset-backed finance, where banks are seeking to increase balance sheet velocity by syndicating portions of their lending books,” says Leiter.

Filling Europe’s infrastructure financing gap

“There’s a huge gap in infrastructure financing in Europe,” explains Yonan, “With an estimated US$30trn needed for infrastructure development, private capital has an unprecedented opportunity to step in and bridge the funding gap.” 

He points to Europe’s ageing transportation infrastructure, grid systems, and power generation assets in need of modernisation – not just to support renewables, but also to meet the growing demand for digital infrastructure and electrification.

While outside of Europe, Blackstone’s recent C$7bn deal with Rogers Communications in Canada, showcases its approach to delivering large-scale, tailored structured credit solutions. Similarly, its joint venture with EQT last year further highlights the firm's ability to structure infrastructure deals across sectors and borders – capabilities that could be key in addressing the complexities of European markets.

“The push for digital infrastructure begins with data centres, which require immense power and connectivity,” says Yonan. “But that’s just the beginning. The demand then ripples across power generation, transmission lines, OEMs supplying equipment, and even EV charging networks. It’s a full ecosystem of investment opportunities.”

The ability to create customised infrastructure financing solutions, particularly for multi-jurisdictional projects, gives the firm an edge. 

“BXCI’s scale and broad capital base really allows us to stand out in Europe,” says Yonan. “We can customise capital solutions and build structures that align with the needs of the companies we partner with. This flexibility allows us to address the unique challenges of different regions.”

Building on this flexible approach, Yonan emphasises that the thematic areas Blackstone invests in – digital infrastructure, renewables, and energy transition – are not short-term trends. “They’re long-term shifts that will continue to shape markets, and we’re positioning ourselves at the forefront of this evolution,” he says.

Marta Canini