Blackstone Sets Up First Global Capability Centre Outside US in Bengaluru
Blackstone is expanding its India operations and global capabilities by opening its first Global Capability Center (GCC) outside the US in Bengaluru. The center will assist financial, technology, legal, compliance and human resources departments and will collaborate with Blackstone’s global teams.
In Bengaluru, Blackstone has established a global capability centre (GCC). Therefore, as the investment firm develops its operating footprint in India, this facility will be the first of its kind outside of the US. The company plans to invest an additional $50 billion into the country over the following five years, bringing its total commitment to $100 billion. The centre will integrate with the firm's foreign activities, according to Michael Chae, Vice-Chairman and Chief Financial Officer of Blackstone.
In addition, the new centre will provide assistance with tasks related to compliance, legal affairs, human resources, technology, and finance. Rather than functioning as an independent back-office facility, the Bengaluru GCC is anticipated to collaborate with teams throughout Blackstone's worldwide network. On top of that, it will help the company's growing business and improve its operating capabilities.
Specifics of Blackstone’s India Office
Approximately 90 people work out of the company's Mumbai headquarters, while 80 people are based out of Bengaluru, bringing the total number of employees in India to about 170. According to Chae, the two groups will develop and work closely with their foreign counterparts to bolster the company's worldwide operations. By year's end, the Bengaluru centre hopes to have hired 100 people. Credit and insurance investment operations senior managing director Susan Yung is in charge of the facility. Managing director of Goldman Sachs' captive centre in Bengaluru was Yung's prior position in India. Senior professionals across critical functions, including engineering, have been hired by Blackstone.
The engineering group will collaborate closely with the company's CTO on a worldwide scale. Consequently, setting up the centre to make a contribution to the development of technology and the execution of operations. Blackstone's asset under management has increased fourfold in the last decade, reaching approximately USD 1.4 trillion, coinciding with its growth into the Indian market. Moreover, the scope and intricacy of its worldwide operations are growing. The firm's foreign operations are better coordinated thanks to the Bengaluru centre, and it also has access to India's well-established talent pool in technology and professional services.
Blackstone’s Presence in India
A wide variety of industries, including banking, e-commerce, manufacturing, technology, commercial real estate, and travel and leisure, make up Blackstone's Indian portfolio. Along with a large portfolio of commercial real estate, it has invested in Mphasis and Federal Bank. With over 150 million square feet of office and retail space under its control, the firm's real estate assets in India are valued at around USD 22 billion. Companies in the IT sector and other GCC operators use its properties. Consequently, it is capitalising on the rising demand for business infrastructure in the nation through its real estate assets.
Among India's six real estate investment trusts (REITs), Embassy REIT is one of five that has included companies financed by Blackstone. In addition, Chae addressed worries about AI and what it could mean for jobs and office demand, stating that dire forecasts of mass layoffs were overly pessimistic. In his perspective, IT companies shouldn't see AI as a danger but as an opportunity to respond to disruption by creating their own tools and services. According to Chae, one company that has used AI to its advantage is Mphasis. Blackstone is still evaluating IT vendors according to the features they can supply to its portfolio firms.
