Blackstone takes minority stake in private equity manager GTCR

Jul 27, 2021 | News

Blackstone Group acquired a minority stake in private equity firm GTCR, a joint release from both firms said Tuesday.

Blackstone acquired the ownership stake through its Blackstone Strategic Capital Holdings GP stakes business, which “specializes in value-added, long-term partnerships” with private market alternatives managers, the release said.

GTCR’s strategy focuses on investment in growth companies in sectors including financial services and technology; growth business services; health care; and technology, media and telecommunications.

The size of the GTCR stake and the price Blackstone paid are not being disclosed, said Paula Chirhart, a Blackstone spokeswoman, in an email.

GTCR will continue to operate independently under its own name, Ms. Chirhart said.

GTCR will have access to Blackstone internal services including ESG and sustainability analysis, human capital management, cybersecurity and product development capabilities, the release said.

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GTCR is “thrilled to have this opportunity to work with Blackstone as a passive minority investor in our firm,” said Managing Directors Constantine S. “Dean” Mihas and Collin E. Roche, in the release, adding “we expect they will bring resources and perspective that will help us as we continue to serve our limited partners, build our franchise and invest our funds over the long term.”

GTCR has “a world-class group of leaders and investment professionals, a differentiated investment approach and a long history of success. I have been personally gratified to develop rapport with the GTCR team and we look forward to our long-term partnership,” said Mustafa M. Siddiqui, senior managing director and head of Blackstone’s GP stakes business, in the release.

Blackstone managed $684 billion as of June 30, its earnings report showed.

GTCR does not disclose its assets under management said Kellie Kennedy, a GTCR spokeswoman, in response to an email request. It has invested $20 billion in more than 250 companies since its inception.

Source: Pensions & Investments

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