About The Blackstone Group
- Year founded: 1985
- Founders: Stephen A. Schwarzman & Peter G. Peterson
- Parent Company: The Blackstone Group
- Core business: Today, Blackstone is a leading global alternative asset manager and provider of financial advisory services listed on the New York Stock Exchange (ticker symbol BX) with total assets under management of approximately $98.2 billion as of September 30, 2007. Areas of business include:
- Corporate Private Equity
- Real Estate
- Marketable Alternative Asset Management (funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds, closed-end mutual funds)
- Financial Advisory (Corporate and Mergers and Acquisitions Advisory, Restructuring and Reorganisation Advisory)
- Fund Placement Advisory
- Regional focus and number of employees: As of September 30, 2007, we had 65 senior managing directors, employed approximately 520 other investment and advisory professionals and a total number of staff of over 1,000 at our headquarters in New York and our offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, San Francisco, London, Paris, Mumbai, Hong Kong and Tokyo.
Corporate Private Equity
- Transaction size range: BCP V’s average equity investment has been approximately $487 million, with a range, to date, of $49.1 million (Emcure in India) to $1.5 billion (Hilton Hotels)
- Total number of funds since inception: Blackstone has managed five general private equity funds as well as one specialized fund, focusing on media and communications-related investments
- Accumulated total capital since founding: $35.9 billion raised
- Total number of investments since founding: 126 investments/commitments
- Total number of investments in Germany: Since 1988, approximately 11 transactions either headquartered in Germany or with a strong German component
- Combined value of the current portfolio consisting of 48 companies: $18.6 billion of unrealized value as of September 30, 2007
- Key sectors: telecoms, media, healthcare, leisure, all sectors
Investment Philosophy
- The Blackstone Group (NYSE:BX) is a leading global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. We create value by combining an intimate understanding of local businesses and the environment in which they operate, applying knowledge from our global network and expertise to drive forward value-creation plans for our portfolio companies.
Corporate Private Equity
- We are a world leader in private equity investing, having managed five general private equity funds as well as one specialized fund, focusing on media and communications-related investments. We established this business in 1987. We pursue transactions throughout the world, including not only typical leveraged buyout acquisitions of seasoned companies but also transactions involving start-up businesses in established industries, turnarounds, minority investments, corporate partnerships and industry consolidations.
Real Estate
- Since 1992, our real estate business has been a diversified, global operation, with investments in a variety of sectors and geographic locations. We have managed six general real estate opportunity funds and two internationally focused real estate opportunity funds. Our real estate opportunity funds have made significant investments in lodging, major urban office buildings, residential properties, distribution and warehousing centers and a variety of real estate operating companies.
Marketable Alternative Asset Management
- Our marketable alternative asset management segment, established in 1990, comprises our management of funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and publicly-traded closed-end mutual funds.
- Funds of hedge funds
We manage a variety of funds of hedge funds, which are investment funds that invest in third-party hedge funds. The funds of hedge funds that we manage comprise a wide range of different portfolios and investment strategies, including broadly diversified funds, strategy focused funds, opportunistic funds and client customized funds. We are one of the ten largest independent funds of hedge fund managers in the world.
- Mezzanine funds
We manage funds that invest primarily in the mezzanine debt of middle-market companies arranged through privately negotiated transactions. These investments are generally structured to earn current income through interest payments and may also include return enhancements including warrants or other equity-linked securities.
- Senior debt vehicles
We manage vehicles that invest primarily in senior secured loans and other debt instruments. These vehicles are of the type commonly referred to as collateralized debt obligation or collateralized loan obligation funds.
- Liquidity fund
Blackstone closed on a $1.3 billion credit liquidity fund that seeks concentrated investment opportunities across a range of securities that emerge from the recent dislocation in the credit markets. This fund intends to use modest leverage to achieve returns that will generally come through interest payments.
- GSO
On January 10, 2008, Blackstone announced that it has agreed in principle on terms under which Blackstone will acquire GSO Capital Partners (“GSO”). GSO is a premier credit focused alternative asset manager with approximately $10 billion under management. It manages a multi-strategy credit opportunity fund, a mezzanine fund, a senior debt fund and various CLO vehicles. Blackstone is expected to combine GSO’s businesses with its own credit businesses. The combined businesses will be managed by the three founding members of GSO, Bennett Goodman, Tripp Smith and Doug Ostrover. The acquisition is subject to executing a definitive purchase agreement and if all conditions are satisfied, the transaction is expected to close within 60 days of the announcement.
- Proprietary hedge funds – We have two proprietary hedge fund advisors:
- Blackstone Distressed Securities Advisors invests primarily in distressed and defaulted debt securities and related equities, with an emphasis on smaller, less efficiently traded issues
- Blackstone Kailix Advisors invests primarily in equity investments on a long and short basis
- Closed-end mutual funds
We are the investment manager of two publicly-traded closed-end mutual funds — The India Fund, Inc. and The Asia Tigers Fund, Inc. The India Fund’s investment objective is long-term capital appreciation through investing primarily in the equity securities of Indian companies. The India Fund is the largest India-focused closed-end mutual fund in the United States. The Asia Tigers Fund’s investment objective is long-term capital appreciation through investing primarily in the equity securities of Asian companies.
Financial Advisory
- Our financial advisory segment comprises our corporate and mergers and acquisitions advisory services, restructuring and reorganization advisory services and fund placement services for alternative investment funds.
- Corporate and Mergers and Acquisitions Advisory
Since 1985, our corporate and mergers and acquisitions advisory services operation has advised on transactions with a total value of more than $325 billion. Professionals in this area have a wide array of specialized industry knowledge and experience and provide all types of corporate and financial advisory services with a wide range of transaction execution capability.
- Restructuring and Reorganization Advisory
Our restructuring and reorganization advisory operation is one of the leading advisers to companies and creditors in restructurings and bankruptcies. Since 1991, we have advised on more than 150 distressed situations, both in and out of bankruptcy proceedings, involving more than $350 billion of total liabilities.
- Fund Placement Advisory Group
The Park Hill Group is our fund placement business. Since it commenced operations in 2005, The Park Hill entities have assisted clients in raising an aggregate of $65.9 billion of capital for 44 funds.
Blackstone’s Limited Partners
- Breakdown of limited partners (in Blackstone Real Estate Partners VI, Blackstone Real Estate Partners International II, and Blackstone Capital Partners V of as December 3, 2007) that can invest in companies globally:
Blackstone’s Limited Partners
- Breakdown of limited partners (in Blackstone Real Estate Partners VI, Blackstone Real Estate Partners International II, and Blackstone Capital Partners V of as December 3, 2007) that can invest in companies globally:
Contact
- The Blackstone Group
European Corporate Communications
-
Sophia Harrison -
Tel.: +44 (0)20 7451 4295
E-Mail: harrison@blackstone.com
- Helen Winning –
Tel.: +44 (0) 20 7451 4344
E-Mail: winning@blackstone.com
