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Blackstone to Acquire Minor Stake in Rockpoint

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Dec. 4 2020, Updated 10:52 a.m. ET

Rockpoint acquisition

On March 13, 2018, the Blackstone Group (BX) announced that it is acquiring a minority equity stake in Rockpoint, a private equity giant. The acquisition is being considered a passive investment and means that Blackstone won’t be actively participating in management’s decision-making process. The terms of the transaction were not disclosed. The Carlyle Group (CG) and 22C Capital also made a strategic minority investment in DiscoverOrg.

Another alternative asset manager, KKR & Co. (KKR), announced the acquisition of a majority stake in Heartland Dental. Apollo Global Management (APO) has entered into a partnership with Realty Partners.

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Management’s view

Blackstone made the acquisition through its strategic capital holdings fund, which is being overseen by its hedge funds business. Rockpoint management reflected positive views, stating that this investment would improve the company’s capabilities and preserve its spirit of entrepreneurship.

Blackstone management had favorable views on Rockpoint’s approach to investments, its strong track record, its relationships with industry experts, and its team. Management stated that its real estate business has executed several equities and debt transactions.

Blackstone’s hedge funds solutions segment has total AUM (assets under management) of $75.1 billion as of December 31, 2017. That reflected a rise of 6% on a year-over-year basis.

In this series, we’ll be looking at Blackstone’s new hires, its take on India, its valuations, its views on higher prices for buyouts, and analysts’ ratings. We’ll also see how President Trump’s decision on tariffs has impacted Blackstone and how it’s promoting entrepreneurship.

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