A Blackstone affiliate has purchased a credit portfolio while establishing an ongoing debt acquisition program totaling $1 billion in small-business commercial real estate loans.
The partnership with Harvest Commercial Capital expands private equity giant Blackstone's reach into owner-occupied commercial properties financed by small businesses. Blackstone Credit & Insurance plans to acquire Harvest loans backed by the Small Business Administration that are used to buy real estate on an ongoing basis.
The partnership will "bring much needed financing solutions to many small businesses, secured by their real estate assets," Aneek Mamik and Nick Menzies, senior managing directors at Blackstone Credit, said in a statement.
Harvest writes loans for small businesses that own their commercial properties. The company has originated roughly $1.05 billion in loans since its founding in 2016 and services over $584 million in commercial mortgages.
In the past two years, Harvest has pooled those loans into securitized offerings for investors. The most recent deal was a $264.6 million offering earlier this year.
The Blackstone partnership provides Harvest with permanent capital to expand its lending capacity, according to the firms. For Blackstone, the arrangement adds a steady pipeline of small-balance commercial loans backed by tangible real estate assets with strong borrower profiles.
Harvest's 2025 loan portfolio is made up of about half industrial properties, followed by office at 18% and retail at 15%, according to Morningstar DBRS, which rated the firm's offerings. California accounted for half the geographic concentration, with Florida and Texas comprising the next largest markets.
Harvest plans to continue operating independently while accessing Blackstone's insurance capital base.