Blackstone to Buy Credit Suisse Private Equity Business

Private equity powerhouse Blackstone (NYSE: BX  ) has agreed to acquire Credit Suisse's (NYSE: CS  ) Strategic Partners secondary private equity business for an undisclosed sum, the company announced yesterday.

Strategic Partners has $9 billion in assets under management (AUM). At the rule-of-thumb valuation of 2% of AUM, this would suggest the business might have sold for $180 million or more -- but the parties are keeping mum on the precise dollar value for now.

What is known is that Credit Suisse has been implementing "strategic divestments" of some of its businesses since last summer, Strategic Partners among them.

Strategic Partners' business model involves buying secondary interests in private equity funds from other investors who already hold such interests. Since 2000, Strategic Partners has raised more than $11 billion of capital commitments, completed more than 700 transactions, and acquired more than 1,400 underlying limited partnership interests from other parties. Its performance has been in the top quartile among its peers. Strategic Partners is staffed by 26 secondary investment professionals, and headed by Stephen Can and Verdun Perry.

The deal is expected to close by the third quarter.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2379721, ~/Articles/ArticleHandler.aspx, 7/30/2014 11:30:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.