Blackstone’s second fund targeting GP stakes raises $3.5bn so far

Aug 3, 2020 | News | 0 comments

The firm’s second fundraising for its Strategic Capital strategy is expected to reach around $4bn

 

Blackstone Group has collected at least $3.5bn so far in its latest Strategic Capital fundraising to back a strategy of investing in other private fund managers, regulatory filings show.

The fund is expected to collect around $4bn before wrapping up and will fuel a strategy that focuses on acquiring stakes in established alternative asset managers with proven track records and good reputations, according to a person familiar with the matter. The strategy calls for leveraging Blackstone’s purchasing power and expertise in selecting asset managers to back.

Along with making capital commitments to fund managers, the strategy provides strategic advice, including in such areas as global portfolio operations, communicating with limited partners and capital allocations, according to Blackstone’s website.

Blackstone’s Strategic Capital unit last year agreed to invest €500m in UK private equity firm BC Partners, WSJ Pro Private Equity has reported. The deal was expected to provide BC Partners with permanent capital for long-term investments in its business.

Earlier last year, Strategic Capital acquired a minority interest in GI Partners, a mid-market-focused buyout shop.

Stake sales by fund managers can provide liquidity for partners that wish to leave. Other major players in the market for stakes in general partners include Neuberger Berman Group’s Dyal Capital Partners and Goldman Sachs Group’s Petershill.

New York-based Blackstone received its first commitments for its Blackstone Strategic Capital Holdings II LP and related vehicles about a year ago, regulatory filings indicate.

The previous fundraising for the strategy wrapped up in 2015 with $3.3bn in capital, the person familiar said.

Source: Private Equity News

 

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