Blackstone, the world's largest asset manager for alternative investments, has launched a new private equity fund called BXPE, targeting wealthy individual investors.

This marks a departure from the traditional exclusivity of private equity, which has historically been limited to institutional investors. BXPE has already raised $6 billion since its inception and is distributed globally through a collaboration with UBS.

Investing in private equity can offer higher returns compared to public markets, with BXPE projecting annual net returns of 12 to 15 percent. However, investors must be aware of the complex fee structure and risks associated with such investments.

The fund imposes an annual management fee of 1.25 percent and a performance fee of 12.5 percent. There is also a redemption fee of 5 percent for early exits.

The current market conditions for private equity investors are challenging due to rising interest rates, leading to a decline in transaction volumes. Despite these challenges, private equity investments have historically outperformed public markets, especially when investors maintain a diversified portfolio and employ active management strategies.

The demand for access to private capital is growing among individual investors, and the collaboration between Blackstone and UBS may pave the way for more initiatives aimed at democratizing alternative investments.