Blackstone Buys Stake in BC Partners

https://dailyalts.com/wp-content/uploads/2019/08/BC-Partners.jpg

Raymond Svider’s shop gets a boost of confidence.

The Blackstone – BC Partners deal is official.

Following a big run up, the U.S. private equity giant plans to invest $560 million into its European rival.

Blackstone’s Alternative Asset Management (BAAM)’s Strategic Capital Group will own up to a 15% stake in BC Partners. BC Partners spun out of Barings Bank in 1995 and has $27 billion under management.

Familiar Territory for Blackstone

The European PE shop focuses on buyouts and M&A financing in the U.S. and Europe. In a press release, BC Partners said the deal will bolster its balance sheet and finance plans.

“This investment is a testament to the growth and institutionalization of our business and will enable us to take the firm to the next level for the benefit of our investors,” said Raymond Svider, Partner and Chairman of BC Partners. “We look forward to leveraging Blackstone’s best-in-class resources and exceptional talent as we look to expand and strengthen our platform across our three key verticals.”

“BC Partners has a three-decade track record investing across sectors and geographies,” said Scott Soussa, Head of BAAM’s Strategic Capital Group. “This, combined with the strength of their people and processes, has allowed the firm to earn the trust of a diverse set of LPs around the world. We look forward to helping enable their continued growth in private equity, as well as their further expansion into newer areas like real estate and private credit.”

Criticism for the Blackstone BC Partners Deal

Despite the positive press release, Bloomberg didn’t offer any praise for the deal. Under the headline, “The Leveraged Buyout Industry Is Starting to Eat Itself,” Chris Hughes questioned the logic of the deal.

Hughes notes that BP Partners’ performance has slipped since 2011.

Furthermore, its current fund is off 11% so far. BC Parntershas struggled due to a variety of bad investments in firms like PetSmart and retailer Phones4U.

Since inception, BC Partners Private Equity has completed 112 private equity investments. In addition, companies it invested in have a total enterprise value of €135 billion. It is currently investing its tenth private equity fund.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/01/Bink-app-shot.png
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-22-29-49-Screenshot-Pawson-2.png
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…

https://dailyalts.com/wp-content/uploads/2022/01/47752022922_e4569a2f0e_c.jpg
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-18-48-26-超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company Parametrix.ai has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…