Profile: Blackstone Group LP
OVERVIEW
The Blackstone Group is a top global alternative asset manager and provider of financial advisory services. The firm has about $91 billion in assets under management.
Blackstone takes a value-oriented approach to its investments. There are 90 senior managing directors and a total of 535 employees. Offices are located in Atlanta, Beijing, Boston, Chicago, Dallas, Hong Kong, Houston, London, Los Angeles, Menlo Park, Mumbai, Paris, San Francisco, and Tokyo.
HISTORY
With $400,000 in equity, Peter G. Peterson and Stephen A. Schwarzman started the Blackstone Group in 1985. Actually, the name is based on the German heritage of both founders. In German, Schwarz means black and petra is the Greek name for stone.
Originally, the firm provided advisory services for M&A transactions. However, by 1987, the firm raised its first private equity fund.
During this time, hostile takeovers were in vogue. However, Blackstone refrained from this. Instead, it would strive to partner with major companies in order to do its deals.
In 1988, Blackstone helped build BlackRock, which is an asset manager. The firm sold its interest in 1994.
Blackstone also has been innovative in structuring partnerships with leading corporations when putting together transactions. There have been more than 40 such deals. Some of the partners include: AT&T (NYSE: T), General Electric (NYSE: GE), Sony (NYSE: SNE), and Time Warner (NYSE: TWX).
What’s more, Blackstone’s real estate investments have been prescient. The firm capitalized on the opportunities of the S&L crisis and made significant investments post-2001.
From 2001 to 2007, Blackstone increased its assets under management from $14.1 billion to $88.4 billion. The private equity funds have financed 112 companies for a total value of $199 billion and the real estate funds have finance 214 transactions for $102 billion.
On March 22, 2007, Blackstone filed with the SEC to raise $4 billion in an initial public offering. On June 21, Blackstone swapped a 12.3 percent stake in its ownership for $4.13 billion in the largest U.S. IPO since CIT Group Inc.'s (NYSE: CIT) $4.6 billion IPO in 2002. Under the ticker symbol BX, Blackstone shares debuted June 22 on the New York Stock Exchange, priced at $31.
MAIN BUSINESS SEGMENTS
Blackstone has four key areas:
Corporate private equity: Blackstone is 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. Its corporate private equity business was established in 1987. It pursues transactions throughout the world, including not only typical leveraged buyout acquisitions of seasoned companies but also transactions involving growth equity or start-up businesses in established industries, minority investments, corporate partnerships, distressed debt, structured securities, and industry consolidations, in all cases in strictly friendly transactions.
Real estate financing: Since 1992 the real estate business has been a diversified, global operation, with investments in a variety of sectors and geographic locations. Blackstone has managed a total of six general real estate funds, two internationally focused real estate funds, a European focused real estate fund, and a special situations real estate fund that is focused primarily on debt and noncontrolling equity investments in the real estate sector. The real estate funds have made significant investments in lodging, major urban office buildings, and a variety of real estate operating companies.
Marketable alternative asset management: This segment includes management of funds of hedge funds, credit-oriented funds, collateralized loan obligation vehicles (CLOs), and publicly-traded closed-end mutual funds.
Financial advisory: The segment comprises Blackstone's corporate and mergers and acquisitions advisory services, restructuring and reorganization advisory services, and fund placement services for alternative investment funds.
Clients have included Albertsons, Comcast, Fox Entertainment Group, Kinder Morgan, Microsoft, Procter & Gamble Company, Reuters, Sony, and Suez SA.
CONTACT INFORMATION
345 Park Avenue
New York, NY 10154
Phone: 212-583-5000
www.blackstone.com
BloggingBuyouts news:
August 13, 2009: Blackstone brings in legendary investor Byron Wien
August 11, 2009: KKR, Blackstone add their two cents on new bank-buying rules
August 7, 2009: Blackstone posts first quarterly profit in a year
August 4, 2009: Expectations for Blackstone on the rise
June 30, 2009: Blackstone anticipates recovery in Europe
June 19, 2009: China cozies up with Blackstone again
May 7, 2009: Blackstone puts another ugly quarter behind it, waits for economic recovery
January 26, 2009: Blackstone rides the tiger and gets eaten
November 12, 2008: Blackstone loses $500 million but claims to be in good shape
August 8, 2008: Blackstone goes green
August 7, 2008: Blackstone gearing up for a buyout comeback ... in 2010
June 25, 2008: Blackstone investing big in pipeline player
May 13, 2008: Blackstone goes event-driven in Asia Pacific
March 16, 2008: Class action suits head to Blackstone
February 28, 2008: Blackstone and First Reserve buying into oil refineries
January 18, 2008: Blackstone pays $1.3 billion for Performance Food Group
January 10, 2008: Blackstone buys GSO Capital Partners for $930 million
November 13, 2007: Blackstone can capitalize on credit markets' wreckage
November 12, 2007: Subprime blamed for Blackstone's sinking share price
September 21, 2007: Private equity's outlook bright says Blackstone COO
September 14, 2007: KKR and Blackstone try, try again for Cadbury liquids
August 24, 2007: Blackstone an easy tax target
August 20, 2007: Blackstone(BX) takes a stake in Gokaldas
August 8, 2007: Blackstone creates largest buyout fund ever
July 3, 2007: Blackstone agrees to buyout Hilton Hotels for $26 billion
June 22, 2007: Blackstone shares debut on NYSE
March 22, 2007: Blackstone files to raise $4 billion in an IPO.
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