uploads/2017/07/BX-and-comp.-AUM-in-PE-1.png

Blackstone’s Private Equity Division: 2 Important Deals

By

Updated

Two major deals

Blackstone’s (BX) private equity division is expected to benefit from two major transactions—namely, the acquisition of EagleClaw Midstream Ventures and the acquisition of Ascend Learning. Recently, Blackstone Energy Partners acquired EagleClaw Midstream Ventures for about $2 billion. Blackstone Energy Partners, as the name suggests, is the sector-specific private equity business of the asset manager. Blackstone Energy Partners completely focuses on the energy sector. This transaction is expected to close in July 2017 in an all-cash transaction. Through Jefferies LLC (JEF), Blackstone had raised $1.25 billion in stapled debt financing to pay for the acquisition.

Article continues below advertisement

Ascend Learning LLC was acquired by the Canada Pension Plan Investment Board and Blackstone for more than $2 billion, which includes debt. This acquisition is Blackstone’s second investment in terms of its core private equity strategy. In Blackstone’s core private equity strategy, the company plans to hold private equity investments for the long term in high-quality companies.

Investing over realizations

In 1Q17, Blackstone (BX) realized $6.2 billion on the back of sales in public and private portfolios across the segment. In the same period, the company deployed $6.7 billion—the majority of which was deployed in the energy and healthcare sectors. As of March 31, 2017, Blackstone (BX) manages $99.7 billion assets in its private equity division, which is higher than alternative asset managers (XLF). Blackstone’s peers have the following assets under management in their private equity divisions.

  • Carlyle Group (CG): $53 billion
  • KKR & Co. LP (KKR): $80.2 billion
  • Apollo Global Management (APO): $45 billion
Advertisement

More From Market Realist