The saying about the best laid plans of mice and men applies all the way up and down the economic ladder. And after a complex set of investment and owed return, Blackstone Real Estate Income Trust is getting deeper in the hole with the University of California, according to the Financial Times.

"The world's largest alternative asset manager promised UC an 11.25 percent annual return from the property fund, called Blackstone Real Estate Income Trust, or BREIT, as part of a deal to draw $4.5 billion in new investment," the paper wrote. "But as the fund lost value last year, Blackstone's liability to UC has grown to $560 million."

How things got here starts just over a year ago when BREIT, Starwood (SREIT), and KKR's KREST fund, all non-traded REITs, had seen massive redemption requests. BREIT needed to add backing to the fund. In early January 2023, Blackstone and the Office of the Chief Investment Officer of the Regents of the University of California (UC Investments) announced a "long-term strategic venture," in which UC Investments would invest $4 billion in BREIT Class I common shares at the January 1, 2023, public offering price. That is the largest share class. UC Investments had previously invested $2 billion in other Blackstone funds for more than 10 years.