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Blackstone Takes Stake in European Buyout Firm BC Partners

Heather Perlberg and Gillian Tan

(Bloomberg) -- Blackstone Group Inc. has taken a stake in BC Partners in a deal that will give the European private equity firm capital to expand.

Blackstone acquired a passive, minority stake in the buyout firm through its Strategic Capital Group, which specializes in minority partnerships with alternative asset managers, BC Partners said in a statement on Tuesday.

Blackstone is likely to invest about 500 million euros ($560 million) in the firm for a 10% to 15% stake, a person familiar with the deal had said, asking not to be identified because the terms of the deal are private.

“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,” BC Partners Chairman Raymond Svider said in the statement.

BC Partners will use the potential cash injection to help develop existing businesses as well as new strategies, such as real estate and credit. Blackstone and rivals, including units of Goldman Sachs Group Inc. and Neuberger Berman Group, have raised multibillion-dollar funds to acquire interests in firms that manage private equity, real estate and other alternative investments.

While some firms have used proceeds to cash out founders, others have redeployed the money to diversify or commit additional capital to existing funds. A minority interest in asset managers can give investors a share of ongoing fee income, which is relatively predictable for firms with several closed-end funds.

Evercore Inc. acted as BC Partners’s financial adviser.

--With assistance from Sarah Syed.

To contact the reporters on this story: Heather Perlberg in Washington at hperlberg@bloomberg.net;Gillian Tan in New York at gtan129@bloomberg.net

To contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Amy Thomson, Ben Scent

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