Blackstone / Invitation Homes 2021: Regulatory Capture & Policy-Dependent Return | GP/LP Analysis — 3 Red Flags | EP11 T2

Eighty thousand homes. Post-2008 distressed assets acquired at scale while the families who lost them had no mechanism to participate in the recovery. The IRR looks institutional. The subsidy embedded in it doesn't appear in the attribution. This is the analysis of regulatory capture through asset conversion — how a fund builds a return profile that depends on a specific policy environment remaining stable, reports that return as alpha, and stress-tests it against market scenarios but never against the political scenario where the subsidy disappears. What a GP or LP disaggregates before attributing return to manager skill versus policy tailwind.