Experts in the Lithuanian market for funds for wealthy investors are currently struggling to imagine a liquidity crisis that would lead to a rapid sell-off of assets and turbulence in the real estate sector, private equity or private debt market.

In recent weeks, liquidity woes in the camp of Blackstone, the world’s largest alternative investment manager, have caused concern in some segments of the financial markets.

The Blackstone Real Estate Income Trust (BREIT), a real estate investment trust launched by the manager in 2017, has a size of around EUR 69 billion. It has recently seen a crowd of wealthy clients looking for the exit door. Recently, the volume of client withdrawal requests has exceeded the expected quarterly limit.

The BREIT challenges are not only relevant because of the potential implications for the property market, but also highlight the challenges faced by managers of funds invested in illiquid assets.